remortgage or not

dogsrus

hi-I am in a quandry-I need to consolidate debt, partly a short term bank loan, where the payments are too high, plus high interest credit cards, and I have a tax bill of £8000 looming in jan 2008. (Altogther about 50k) I have a lot of equity in my property (about £60-80k) and am considering remortgaging or a secured loan to get rid of some of the debt and pay my tax bill but I am worried about securing it to my home. I have had one offer but the fees are 7% of the loan and the repayments are nearly as high as my original mortgage but the loan is for half the amount. Even if I live on beans on toast for the next year,it will not sort this out. Is remortgaging or taking out a secured loan such a bad thing-should I be paying 7% fees just because I am self employed. Can anyone offer some advice.I would be grateful.

misspoppy

Hi

with the tax you can speak to them and make regular payments you could start now and continue after Jan as long as you keep up with it, its not a problem, you can also pay in advance so you don't end up with a big bill which will help reduce the stress of it all, give them a call and find out about your options it might help with the decision.

trying-very-trying

Hi, and welcome.
You know yourself that consolidation is probably not a good idea.

Read southernscousers sticky http://forums.moneysavingexpert.com/showthread.html?t=107280
It'll help you to post a full statement of affairs, and then all the wise and wonderful people on this site will give loads of advice on how to deal with your situation

Conrad

Remortgage will be a lot cheaper than a secured loan.

No need to pay 7% fees - use your brain and shop around. Look for reputable brokers not the 0800 number type.

You need the broker to sho you his IDD (A legal document that sets out his services) and on that you need ensure the following:

1) He is whole of market
2) He gives full advice and a recommendation - this makes miselling less likely and is vital
3) The fees are clearly displayed - beware sometimes the second box for fees is left blank and thye input a figure AFTER YOU HAVE SIGNED

Look for an anorak type person not a slick saleman who reads the Sun sport pages. Anoraks are'nt good salesman and are usualy more honest - smart people buy based on logic not emmotion. Dummies buy from good salesman based on emmotinal response - 'he seemed like a nice guy;.

Most of all tell each firm you are shopping around as this puts them on thier toes.

Being self employed is not an issue - even most high st lenders can assist - but probably best to still go via broker to such lenders

dogsrus

thank you to those who have been kind enough to post a reply. I have still got to get the tax bill sorted but I think that having read lots of your stories, that consolidation is not the answer and I have already done my snowballs and know what is what-it just seemed like a good idea at the time. I am going to renegotiate with my bank, see if they can lower my payments, speak to the tax office and try to work out a repayment schedule and keep going with the snowballs until I reduce the highest interest credit card-it has to be better than giving someone thousands just for finding a loan.
thanks again-I feel better about it already.