Wow this is all causing me a headache - Re-mortgage advice please...

bearne1

......me and my partner bought a house in Dec' 2005 and the 2 yr fixed rate with Abbey ends in November this year. We are looking for a deal where we could borrow an extra 10k to consolodate the following:

Natwest loan - 7k
Natwest credit card - 1.5k

The remainder of the Mortgage at present is 91k and the house valuation is approx £130k.

I have a 'fair' credit rating at 763 and my partners is likely to be a lot worse due to a problem with an old Dorothy Perkins storecard, the account is now with a debt collection agency for a massive £250.

Can anyone help us with this situation?

bearne1

Any help would be greatly appreciated.

Many Thanks

KTF

Have you spoken to a broker about this? 101k with 130k value gives a loan to value of 78% which should mean you have a fair range of options even with the credit history.

seraphina

It's almost always a very bad idea to remortgage to consolidate debts - by all means remortgage to get a better deal on your house borrowing, but please do NOT add your credit card debt onto your mortgage (Martin has written some excellent advice about this on this site; the debt free wannabe board also has some sound advice).

Adding your credit card debt would turn unsecured debt into more debt that is secured against your home.