Secured loan affect remortgage

patters78

Hello everyone

Sadly me and my wife find ourselves in a bit of a rubbish situation.

We moved 8 months ago £210000 house value £154000 mortgage since we have spent 20k on credit cards for home improvements, we have been affording the monthly payments while saving extra to pay some back each month.

Sadly my son has become ill and my wife has needed to quit work and on my wage I'm finding it extremely hard to make payments

So my only option I can see at present is to get a secured loan and spread the amount longer but will that have a impact when I come to remortgage in just over 12 months? Probably be with norton finance as my credit file has taken a beating due to credit card s being maxed and credit searches 😩

Cheers

DCFC79

What about cutting back on your spending ?

Sell the car and buy something more economical ?

patters78

We are currently in the process of doing this but going by the figures it's still very very tight doable but leaves us with nothing to pay back or saving in case of emergencies etc.

And I'm not just saying that in the last few weeks I have started lift sharing so fuel costs are down to me driving once a month my car is a 1.6 diesel and is very cheap on tax etc
I have also quit smoking
We have reduced shopping spends by shopping on market for veg and Lidl because it's cheaper
Mobile phones have been cut to £10 pm sim only deals
My next thing is cancel sky in a few months also

We are running very tight already

patters78

My question is this though

What's better

Multiple credit cards paid on time but probably have a high balance

One secured loan paid on time with possible saving

When it comes to applying for a mortgage? The debt will be included within the remortgage hopefully

Pixie5740

I don't advocate turning unsecured debt into debt secured against your home. What happens if you struggle to keep up the payments to the secured loan? You'll be risking the roof over your head. Besides this isn't 2007. There aren't many lenders out their offering secured loans (other than mortgage lenders) to people with checkered credit histories.

I think you would be better off contacting one of the debt charities, CAP UK, National Debtline and looking at your options. You could also try negotiating with your creditors directly if you want, see if they will accept a reduced payment of freeze the interest. I know this option will probably impact your credit files and therefore ability to get credit but it won't be forever. In the meantime when it's time to remortgage you could look at your current lender's customer retention products as those don't usually require a credit check.