Help with Mortgage, loan & credit cards

andrea33

Hi All

I am a newbie at posting on here, but I am after some big financial help at the moment

I have an endowment mortage at the moment, I took out 16 years ago, for £38,000. I have 9 years left on this & am wondering whether to take out a new one for about £75,000 - £80,000 to combine my £19,000 loan with Tesco & also £15,000 I have amassed on my 5 credit cards!!!

If I take out a new repayment mortgage & still have my endowment policy running, will my mortgage get paid if something happens, or should I get life cover.

I am in such a pickle & just want one payment to make for about 10 - 15 years max.

Can anyone help me with my debt dilemma? Any advise would be helpful

thanks in advance

homer_j_3

you will need to state your income to see if its possible to do what you want to do but you need to consider the following:

- you are securing debts against your home, which means if you get into financial difficulty further down the line, you could lose your home where as at the moment the worst they can do is give you a ccj if you failed to pay your loans etc.

- you are going to pay potentially more back overall by extending your mortgage and loans. If you are paying min payment on credit cards you will probably save money - depending on rates on cards of course.

- you need to look at your attitude to spending and debt, if you clear this and spend again, you get in the spiral which will end up stuffing you in the long run.

You need to look at more than just life cover for your debts, you need to consider your ability to pay if you lost your income for any reason beyond your control etc.

If your outgoings are causing pain, I would only do debt consolidation as a last resort. Maybe posting your statement of affairs on the debt free wannabe boards will give you some ways of saving moneys which you can look to use to decrease your debts more speedily?

andrea33

My income is about £40,000 (combining mine & husbands)

Thanks for the advise

Was trying to get another loan for £15,000, but not sure if I could with my other £19,000 loan. Did try Barclays, who I have my account with, but their rate was 12.5%!!

Do you think I could get another loan, even though I already have one?

17Dave

I agree completely with Homer_j.

If you do want to consolidate one alternative might be a flexible mortgage - allowing overpayments. You can control the term of the additional borrowing by overpaying - this may reduce your monthly payment without the term being extended, however a level of discipline in managing this is required.
This can work as the mortgage rate you could get is almost certainly well below the rates you are paying on loans and especially credit cards.

I would suggest finding a financial adviser / mortgage broker who will discuss your circumstances and give you a no obligation quote. (Lots of posts in the forums about finding the right broker!)