Remortgage to consolidate debts with Yorkshire Bank. Bad credit.

mariamaria2107

Hello

My partner and his mum took out a mortgage 3 years ago with Yorkshire Bank, house value £90,000 - mortgage £42,500.

Since taking out the mortgage, both myself and my partner have had a rough couple of years, I've had a couple of spells of unemployment, illness and generally a series of unfortunate events. We didn't manage our finances in an adult like fashion, learnt the hard way, as we now have a few recent defaults to our names, late payments etc.

We currently pay £275 per month for our mortgage over a 17 year term. We'd like to consolidate everything with additional borrowing. We've never missed our mortgage payments, always paid on time and we'd like to transfer his mums name off the mortgage and mine onto it. We would not be increasing the monthly payment amount just the term. We would wait to transfer the names, but just makes sense to do this all in one go. We can also prove the mortgage payments have been paid from our joint account and not his mums.

I highly doubt we would be accepted to any other lender due our credit and my employment history, (I've been googling for the last few days and think it's best for us to apply as me as a financial dependant to my partner and use his income alone to borrow the funds we need) however I'd like to know if anyone out there has any inclination of if Yorkshire Bank would approve this as we'd be hundreds of pounds better off consolidating everything.

Thanks in advance.

Pixie5740

You wouldn't be better off. You'd still owe the same amount of money it's just now that it would be secured against your home and you'd be repaying over a longer term and therefore pay more in interest.

[Deleted User]

It's a genuinely terrible idea.

You need a plan to pay the debts off faster, not kicking them 20 years down the road, where they will be much bigger and scarier than they are now.

mariamaria2107

It would be borrowed at a rate of 1.79% which is a lot cheaper than the interest of the credit cards etc.

[Deleted User]

That's if you can get it at that rate (unlikely), over a much longer term and with the potential for the rate to rise, unless you get it on a 20 year fix.

Rosemary7391

Wouldn't that entail changing the ownership of the house from partner+mum to partner+you ? It puts mum in a bad position - she'll be depending on you both not going bankrupt etc.

You have a low mortgage payment - I'm sure with a bit of time you'd be able to have it all paid off without risking your home over it. Post a statement of affairs on the Debt Free Wannabe board and they'll help you with it

Pixie5740

mariamaria2107 wrote: »

It would be borrowed at a rate of 1.79% which is a lot cheaper than the interest of the credit cards etc.

Not if you're paying it off over 17+ years.

gettingtheresometime

Please don't consolidate your debts onto your mortgage.

It's a really really bad idea.

At the moment if you default on an unsecured loan (credit cards etc) the worst that can happen is that you get a ccj.

You default on your mortgage you run the risk of losing your home.

Not to mention you could get in the mindset of thinking you've freed up cash so restart the cycle only this time it will be worse because you've got the extra debt that you theoretically cleared by consolidating it.

As been said go over to the debt free wannabe board & read up on snowballing your debts - will be far more use to you