Debt consolidation from a secured loan

Savathon

Hi!

We have a secured loan with Nemo for £50k which we took out to cover the cost of an extension last year.

The term of the mortgage is 25 years. A high interest rate of 12%. Repayments costing us £540 per month.

We had hoped that our mortgage provider would agree to include this amount in a remortgage or additional loan, but not their policy.

Can anyone recommend other options whereupon we can consolidate this debt into a lower interest rate service. Our financial circumstances are thankfully good all round.

Regards,
S

Gaz83

Savathon wrote: »

Hi!

We have a secured loan with Nemo for £50k which we took out to cover the cost of an extension last year.

The term of the mortgage is 25 years. A high interest rate of 12%. Repayments costing us £540 per month.

We had hoped that our mortgage provider would agree to include this amount in a remortgage or additional loan, but not their policy.

Can anyone recommend other options whereupon we can consolidate this debt into a lower interest rate service. Our financial circumstances are thankfully good all round.

Regards,
S

What's your income? How much is outstanding on the loan?

Apples2

If your financial circumstances are good, why on earth would you sign up for a 50k, 25yr loan at an eye watering 12% interest rate?

Savathon

Financial circumstances maybe good, but didn't / don't have £50k spare. Nemo was the only option at the time. Interested to know what options are out there now. Salary good. Not made any kind of dent on the £50k.

Thanks,
S

CLAPTON

you are unlikely to get a unsecured loan for 50k anywhere.


so your options are basically to re mortgage to a new lender if you own won't accommodate you.

Pixie5740

What's the current value of your property and how much is your existing mortgage?

Savathon

Property value £710k. Mortgage £434k. Tied into a fixed rate of 2.2% with current mortgage provider until March 2016.

S

CLAPTON

Savathon wrote: »

Property value £710k. Mortgage £434k. Tied into a fixed rate of 2.2% with current mortgage provider until March 2016.

S

approx. 50k at 12% for a year and 1/4 will be about
50,000 x 12% x 1.25 = 7,500


what is the penalty for breaking the mortgage early?

Savathon

Hi Clapton. 3% penalty.

CLAPTON

that would seem a penalty of 3% of 434k which is 13,020 plus of course re-mortgage fees


so it doesn't seem a good option unless you would qualify for a lower mortgage interest rate.

Savathon

Probably best to sit tight until next year? Not withstanding making overpayments to the Nemo loan where possible? (No penalty for this.)