Consolidation Loan and Re-Mortgage Question

skintmummy

Myself and my partner have been struggling more and more each month to survive with the debt we have.

I am currently looking in taking out a secured consolodation loan over 15 yrs to reduce our outgoings, so we can live a bit better each month.

I was wondering if this will effect us when we come to re-mortgage next yr. We are first time buyers and have been in the house for 7 months and already the property has gone up in value by £30,000.

Any advise would be welcome.

nomoneytoday

Any loans you have will be taken into consideration when the mortgage lender checks.

This is to ensure you can afford the mortgage.

Simplistically, So if you owe £15000 and earn £30000 pa, they will say something like mortgate offer is 3 x salary (90k) - 15k loan

In the real world 3 times salary isn't the norm, and the loan repayments would be looked at rather than a black and white 15k deduction..

financial_solution

skintmummy,

Any secured loan you take out now will have to be paid-off (with associated penalties) when you re-mortgage.

Why do you wish to take out a loan now AND remortgage as this involves borrowing twice and two lots of fees.

regards,


Mark