Refinancing

Matt37

Hi guys,
I have a mortgage of 167000 based on Bank of England base rate plus 1.99 for the life of the product which seems pretty good. Unfortunately a dodgy builder deserting us has left us with 40k of borrowing we now need to absorb somehow?
28k is on loans (22k at 8.5 apr and 6.5k at 4.9 apr) the rest 12k is on 0 percent for 2 years on credit cards. Any thoughts/advice?
I was thinking we could maybe just move the 22k somewhere (better loan or top up mortgage and hammer the payments on the rest for 2 years? Or are there better remortgage deals than my situation.
House values at 265000 I earn 38500 my partner 24000 however she is on statutory maternity 580 pcm plus 80 family allowance for next 3 months as we have a 3 month old son, which is ace!
Any advice would be fantastic
Matt

Thrugelmir

What contigency do you have for a rise in base rates? With £46k of unsecured debt, (my personal view), is that you are walking a fine line. You will find it extremely difficult to obtain low long term fixed rates. Simply because of the risk you pose carrying the amount of debt you have. At 0.5% base your mortgage rate does look good. At 3.5% or 4% then your finances may become somewhat more stretched.

Matt37

I know we are in a bit of a spot, looking for help here really. A builder deserted us and we had a baby on the way. Now I need to do what I can to resolve things.
The mortgage I have is on an interest only basis (this is flexible and can move to repayment when I can afford to) and I have 4k in savings. The plan is to focus all of my energy on reducing the extra borrowing I have for now. Any advice would be greatly appreciated.
Matt

kingstreet

Ask your current lender about additional borrowing, if you have enough equity in the property.

Obtain quotes for remortgaging the full amount, again if you have enough equity, but bear in mind you will not get interest-only now, unless you have an acceptable repayment vehicle.

Compare the two.

Some lenders won't like your partner's maternity leave, others won't be bothered.

robtgossard

You might want to consider liquidating some of your assets, say, any gold or silver bullion investment or withdraw from bank deposits. But first try out what Kingstreet suggests. If that works for you, great! By the way, congratulations on the birth of your baby