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consolidate for a mortgage
MNM2903
Posts: 322 Forumite
Just wondering
Currently have 2 loans one with £6300 outstanding at 9.7% APR with Llloyds
one at £4500 at 10% apr sainsburys
im going for a mortgage in the next 12 months and have a deposit of 4k so far and hoping to have around 12k
is it wise to consolidate these loans and try for a better rate to bring monthly outgoings down but the term would renew to 5 years where as at the moment i have 3 years left but pay more monthly?
Currently have 2 loans one with £6300 outstanding at 9.7% APR with Llloyds
one at £4500 at 10% apr sainsburys
im going for a mortgage in the next 12 months and have a deposit of 4k so far and hoping to have around 12k
is it wise to consolidate these loans and try for a better rate to bring monthly outgoings down but the term would renew to 5 years where as at the moment i have 3 years left but pay more monthly?
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Comments
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Lenders typically go off the monthly repayments so by extending it to 5 years that should help affordability.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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thats what i thought like. it reduces the monthly outgoings from £285 to just £205. Thanks
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Some lenders factor in a percentage of the outstanding balance into affordability calculations, regardless of actual monthly repayment.0
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I think thats more for credit cards rather than loans.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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