poor to average homeowner loan

john1986

Don't really know much about these but any advise would be appreciated, credit score is low, looking for about 5k against the house, we've lived here 3 years and bought for 40k worth at least 85k now hope this helps any replies thank you

CKhalvashi

Google for Martin's guide on secured lending.

My only advice is don't do it.

CK

john1986

Ok I understand there is massive consequences if I miss payment etc but I would be consolidating and would work out roughly 400pm better off and can't achieve a normal loan

retepetsir

Don't do it. Call Stepchange and look at a DMP

CLAPTON

john1986 wrote: »

Don't really know much about these but any advise would be appreciated, credit score is low, looking for about 5k against the house, we've lived here 3 years and bought for 40k worth at least 85k now hope this helps any replies thank you

really need to know your circumstances

what do your credit files say
what are you debts
what is your income

would be a good start

Pixie5740

Turning unsecured debt into secured debt is rarely advised. It was a popular way of consolidating debt before 2008 (Remember all those Ocean Finance adverts on television? I wonder how many people who took those out are regretting it now?). These days you need a lot more equity in your home and a good credit file in order to get a decent rate. You say your credit file is poor to average so that might be out as there's no point getting more expensive credit to pay off cheaper credit.

Remember if you do get a secured loan then if you get sick, or your hours are cut or you are made redundant, then at some point the benefits system will help you with your mortgage payments. But it won’t help you with the cost of a secured loan or second mortgage that you have taken out on top.

It might be a bit premature suggesting you start a DMP if you are currently able to service your debt. Snowballing your debt so that you can make your repayments more effectively would be a good place to start.

http://www.whatsthecost.com/snowball.aspx

Then fill in a Statement of Affairs and post it on the Debt Free Wannabe board to get some moral support and ideas on how to make your budget go futher so that you can repay your debt more quickly.

http://www.stoozing.com/calculator/soa.php

DCFC79

Stop the impulse buys.

CHR15

You posted this in Feb 2012

http://forums.moneysavingexpert.com/showpost.php?p=51046843&postcount=5

debts would be lots better if we got the loan and were after 5K

A repeating story ever since that just one more loan would make it all so easy. When will the message that you CANNOT borrow your way out of debt get through?