Consolidation (as a reason) - Is it a good idea?

a_hardcastle

Sorry but another question... when giving a reason for a loan, obviously you have to be honest but I'm considering one for debt consolidation - will this automatically make me look like a high risk borrower? Will it affect the APR I'm offered and exclude me from the cheaper 6.x percent rates and push me up into the 8.x and 9.x percent loans?

I have no missed payments (ever!), bad debts, CCJs, bankrupcy or anything similar in my credit history.

ta,

A.

jonesMUFCforever

Consolidation ONLY works if you change your spending habits.
Promising to do so by keeping the odd card in a drawer for an emergency (which almost immediately arises) will only end up with you having even more debt.
Work out why you are in debt - live within your means - pay off what you owe without spending any more on credit.

a_hardcastle

Thanks ejones999, but what I'm really getting at is if I use consolidation as the reason will I be penalised for it?

[ I'm actually consolidating my debts because everytime I go to my bank for a mortgage (I'm moving house hopefully) they insist on rolling all my debts (ccards, flexiloan, estate agent fee, stamp duty - anything they can think of! - even if its the end of the month my overdraft - and thats only £100!) into the mortgage and making it as BIG as possible and then charging me for it over the next 20 years! While also suggesting I extend my mortgage period too - something I REALLY dont want to do - I want to consolidate to bundle that debt into one (hopefully smaller payment as rates are better now) and move it out of their way, then when I go for a mortgage its simply my existing house - against my new house, my income - against my outgoings, so I might get a straight answer and some straight figures for a change!!!]

regards

A.

seven-day-weekend

I have put 'consolidation and capital raising' as a reason for a loan and had no problem.

But I do agree with the other poster as well.

jonesMUFCforever

seven-day-weekend wrote: »

I have put 'consolidation and capital raising' as a reason for a loan and had no problem.

But I do agree with the other poster as well.

No you won't be penalised.

jonesMUFCforever

a_hardcastle wrote: »

Thanks ejones999, but what I'm really getting at is if I use consolidation as the reason will I be penalised for it?

[ I'm actually consolidating my debts because everytime I go to my bank for a mortgage (I'm moving house hopefully) they insist on rolling all my debts (ccards, flexiloan, estate agent fee, stamp duty - anything they can think of! - even if its the end of the month my overdraft - and thats only £100!) into the mortgage and making it as BIG as possible and then charging me for it over the next 20 years! While also suggesting I extend my mortgage period too - something I REALLY dont want to do - I want to consolidate to bundle that debt into one (hopefully smaller payment as rates are better now) and move it out of their way, then when I go for a mortgage its simply my existing house - against my new house, my income - against my outgoings, so I might get a straight answer and some straight figures for a change!!!]

regards

A.

No you will not be penalised.
If you get through their credit scoring then they don't care what you use the money for as long as it is lawful.

a_hardcastle

thank you one and all!

:-)


A.