Secured Loan

rodders099

Good morning.

Looking for a bit of advice please.

Circumstances are these.

Employed FT, income is £40,000 pa. £2,400pm.

Mortgage is £400pm.

Own home 70/30% with local council.
House worth £135,000
Mortgage outstanding is £75,000.
I have £19,000 equity in property. (My 70% share)

I have an excellent repayment record on many credit accounts.
Paid everything on time last 7+ years.

Am looking at a secured loan of £15K over 7 years, to clear all outstanding debt. (Credit cards).

Can anyone tell me if I can get a secured loan and if so who is the best people to go with ?

Many thanks.

cynicalgit_2

DON'T get a secured loan, from my experience it's a recipe for disaster.
Post up your SOA on this forum for better advice.
Never convert unsecured debt into secured debt.
Your situation looks promising, don't take out another loan.

rodders099

Hi,

Thanks for your reply.
Can you tell me what SOA is please ?

My situation is fine, honestly, I'm in good shape but would just like to consolidate my loans into one.

There is no issue with repayment and the interest rate on a loan will almost certainly be less than on my CC's.

cynicalgit_2

Sorry, yes it's Statement of Affairs.
Basically you write down all your incoming and outgoing expenditure.
This gives you the opportunity to see where all your money is going!
Why not get all your credit onto 0% cards if possible then organise your spending to get rid of the debt.
I ended up with a mortgage shortfall and negative equity due to a secured loan.
There are plenty of sub prime loan sharks out there avoid at all costs.
Your situation seems pretty promising don't compromise it with more debt,trust me it never works.

poppasmurf_bewdley

Consolidation, especially converting unsecured debt to secured debt, is seldom a good idea. At the end of the day, it's just borrowing money to pay off money, but leaving you in a much worse situation than when you started.

As has been suggested, make out a SOA and review your spending as a first step.

PS. Not sure if you can take out a secured loan on a shared property without the permission of the other party.

Tixy

I suspect there is very little chance of getting a secured loan given that your LTV is already at 80% and that your property is under shared ownership.

Are your existing debts at particularly high APRs? Do you currently owe £15k on your credit cards?

Rather than a consoliation loan it may make sense to look at ways to
- increase the amount you are repaying to your debts currently,
- see if you can restructure the debts at all (e.g. can you get a 0% balance transfer credit card to transfer your highest APR card debt to)
- check out the snowball calculator to see what order to repay your debts and how long it will take you to clear your debts based on the amount you pay currently a month, and how much that will reduce if you can increase your repayments.
http://www.whatsthecost.com/snowball.aspx