remortgage

yraunaj

We need to remorgage and borrow some money to pay off credit cards how do mortgage companies react to this would it be better to say we want to borrow it for home improvements this will be the second time we have remortgaged and ask for it for home improvments last time which is what we used it for we have around 50k equity left. thanks

herbiesjp

Debt consolidation is a perfectfly good reason, if indeed you are happy to turn unsecured debt into secured debt

silvercar

Do you really want to transfer unsecured debt (your credit cards) to secured debt? Your home will be at risk if you can't keep up with the repayments on the mortgage.

If you are living off credit cards, it means that you are not living within your means. These CC debts will become part of your mortgage and cost you years of interest.

Don't think that the 50k equity you have in your home is money waiting to be spent. It is never a good idea to take all your equity out as (a) it costs you to pay it back, (b) it makes remortgaging harder if you have little or no equity, if prices drop you the situation gets worse and (c) if you needed to sell and the price wouldn't clear your then enlarged mortgage you would have a problem.

yraunaj

thanks for your useful comments i was mistaken it is actually loans we want to pay off with a remortgage borrowing 15k and with the loans gone pay that extra money into the mortgage, and more off some credit cards we have.