Loan from mortgage

sillywithmoney80

Hi there looking for some advice, my fixed period of my mortgage is due to expire at the end of January 2016.

When re-mortgaging 2 year ago to make things easier at the time we borrowed money on top of the mortgage to consolidate debts, now that the fixed period is ending I am wondering if it is best to leave the £5500 at a STV rather than fixing and when if possible paying this of quicker than the 29 year period.

Current Debt


Car loan £3000
Mortgage load £5300
Credit Card £2500.


would it be easier putting all my eggs in one basket and fixing the monthly payment for the mortgage load rather than STV. or would it be easier concentrating the £2500 on the credit card then the car loan and then the mortgage loan. My gut feeling is telling me to stick it out but the financial difficulties is telling me to consolidate the loans in to one. Can anybody advise please?


Thank you G

glentoran99

that 5500 wont be a separate amount in the mortgage surely, your mortgage will just be more, unless this was separate secured lending

sillywithmoney80

Sorry you are correct this was secured with the mortgage I can leave this as stv and just leave the mortgage as fixed but with the 5500 the projected payment can differ upto 40 on top of what I am paying just now

ViolaLass

Do you mean SVR?

Is your mortgage really £5300 or is there a 0 missing?

Do you mean that since consolidating you have run up further debts? In which case, I would suggest that what you really need to focus on is getting your spending under control.

sillywithmoney80

Yeah now you can see how I git in to this mess total mortgage 69000 5500 secured loan. The large part of 63500 will be fixed for 2 years 5500 will stay as SVR mortgage is over 28 year. We have 2500 on credit card due to wet rot and wood worm in out bathroom had to completely do bathroom and 3k from car loan. Is it better trying to tackle 1debt at a time rather than consolidate to 1 loan should be able to pay £500pcm to credit card

ViolaLass

The issue isn't 'should I tackle one debt or consolidate', the issue is 'how do I avoid racking up even more debts in the next two years'. In the mean time, you may as well throw as much as you can at whichever debt has the highest interest rate.

redpete

Consolidation often means extra credit - and it looks like it might have been this with your circumstances; because of this many people advise tackling the existing debt rather than shifting things around in a way that makes you think you are dealing with it but in reality you are just shifting things round. I'm still not clear on what your options are, are you considering adding a separate secured loan on to the mortgage?

With the limited information I would suggest using any spare cash to pay off the CC, then the car loan, then the secured loan (also making sure you have some savings for the next emergency).

It would help you more if you went onto the Debt-Free Wannabe board and posted an SOA so people could get a clearer idea of income, debt and expenditure and therefore be able to give more informed advice.

sillywithmoney80

thank you for the advice