2 parter re-mortgage and £28,000 debt

murph524

My current fixed rate is finished soon. Im with Lloyds tsb. £40,000 interest only and £16,000 repayment. They are offering me 5.75% fixed for one year followed by a variable rate which is 0.49% above the bank of england base rate currently 5.75% until sept 2012 to give a current payable of 6.24%
They have also offered a fixed rate of 6.38% for 5 years
Could i get a better offer else where ALL suggestions welcome
PART 2
I have credit cards debts of about £28,000 over 5 cards i currently am going through council help getting it sorted getting interest free for 6 months ending now trying to get it extended. Should i try to re-mortgage for an extra £28,000 to pay off credit cards or just keep paying credit cards ?
£500 interest free about £830 with interest per month.
house value about £120,000

Kiernan809

murph524 wrote: »

Could i get a better offer else where ALL suggestions welcome

Always worth checking - give a call to a no-fee broker.

murph524 wrote: »

Should i try to re-mortgage for an extra £28,000 to pay off credit cards or just keep paying credit cards ?

If you can extend the interest-free period on this then there would be no reason to do so as you would pay interest on your mortgage and over a much longer term.

If you cannot then the rates will likely be lower but you're paying over a longer term which will probably cost you more in the long run. Your adviser will explain this if you go down the route of chatting to a broker.

The benefit is to take your mortgage up to around 70% loan-to-value you will not necessarily cost yourself any more on the loan as a whole by going into a higher-rate LTV bracket.