Borrowing on my mortgage to pay off debts

jasper27

Hi
I have a repayment mortgage with 24 years to run.


The balance is approximately £54,000 on a property valued at around £90,000. (Sorry I don't have the full details on me at the moment).


A few years ago I was left unemployed and struggling to pay my mortgage so the council gave me an interest free Breathing Space loan, where they paid off my arrears and I am now paying back that loan, but it has to be cleared by February 2015 and I still owe £4,625.


I am now back in full time employment with a salary of £12,000


My mortgage payments are £364.04 a month.


My interest rate went down on my mortgage in April 2013 reducing my payments to £330.16 a month but I continued to pay the monthly payments at £364.04 so up until December 2014 I have made an overpayment of £718.48, although I don't know if there's interest to come off that.


I am hoping to see a mortgage advisor tomorrow with regards to getting a loan of around £8,000 on my mortgage or a re-mortgage? (I don't know the proper term) to pay off the breathing space loan and a few other small debts and have a bit left to get a small 2nd hand car.


Do you think I will have any problems? I'm not very good at this kind of thing and just the thought of going to see someone about it is making me anxious, but I need to get it sorted.


Any help would be gratefully received

Contemptuous

What you're looking for is a further advance on your mortgage. Based on your income, I'm not sure you'd be able to borrow anymore unfortunately. Do you receive any other income at all? Benefits etc.?

jasper27

Thanks for your reply:-

Contemptuous wrote: »

What you're looking for is a further advance on your mortgage. Based on your income, I'm not sure you'd be able to borrow anymore unfortunately. Do you receive any other income at all? Benefits etc.?

I get WTC of £71 a month and my son lives with me and pays me housekeep.


Why don't you think I'd be able to borrow any more?


The way I see it is, I'm paying back the Breathing Space loan at £110 a month at the moment and if I borrow against my mortgage.. 'a further advance on my mortgage' I would be paying a lot less than that a month over the rest of the term so could easily afford the payments

jasper27

ah well... I'll go and have a word with a mortgage advisor and see what they say.. fingers crossed.

amnblog

If you have made all your payments on your credit in full, and on time, for the last 12 months you should have some options for this.