Help Pls!

slimshady_2

All this mortgage info baffles me!!! Rite here is the story we have a mortgage of 83450.00. I have a loan of 5500.00 which i am jsut about to start paying (this was combined credit cards) IT is going to cost me 205.00 a month. On adding up our finances I see this is really going to stretch us and I would just love to add it onto the mortgage and get rid of it. I understand I am goin to pay a lot more in the long term but at least we would have a bigger disposable income each month. We have had mortgage for 17 months. Houses around our way are now being valued at around 103-105k. Bit about our mortgage says this:
You can borrow money for any purpose
You can borrow up to 95% of your home's value (including the amount of your existing loan) for home improvements, or up to 85% for other purposes.

How much do you think we would be allowed to borrow then!? Also could I risk pretending I am borrowing the money to put in a new kitchen so that I could take advantage of the 95% loan as the 85% will not be enought to pay back my loan. (I am not great with percentages!!!)
Debs x

Xbigman

Claiming to be doing home improvements to get a bigger mortgage is not a good idea. Quite apart from the legal aspect that it could be fraud, you really should take a close look at your borrowings.
You have run up credit card debts then taken out a loan to get rid of those debts. Now you can't afford the loan so you want to shift this onto your mortgage. Once you make this a secured debt your home is at risk. Add to this that we are in an uncertain housing market and you want a to go to 95% of house value on your loan, then you are asking for trouble.

You need to re assess your spending and start paying off your current debts. The debt free wanabe board has loads of tips on clearing debt whilst the money saving old style board has tips on thrifty living.

Sorry. Not what you wanted to hear I know but you should consider any mortgage increase very carefully.
Regards



X

Debt_Free_Chick

Agree with X

Have you now destroyed the credit cards & closed the accounts? If not, I guarantee you will run up the debt again.

As for the loan ... default on the loan and nothing too bad would happen. Default on the mortgage - as you've increased it to include the loan - then you lose your house.

Is is worth the risk of losing your house for a few credit card debts?

Come over to Debt-Free Wannabe and we'll help you with a plan to PAY OFF your debts and not just shuffle them around.