Consolidating debt with mortgage

JoO

We have around 30k in debt between bank loans and credit cards. We have mortgage free property to the value of around 285k, (one we live in, one is let), but struggle to meet everyday expenses every month. Is it likely we would get/sensible to take out a mortgage on our home to consolidate our existing debts and thereby reduce overall outgoings? We are late forties, and both working.

ACG

If you are struggling to meet every day expenses - does that mean there are late payments?

Raising a mortgage will likely reduce your payments but you will be paynig it off over a longer period which in turn may cost more in the long run. That is not a problem as such, it sounds like your priority is to have more money each month rather than pay down the debt quicker, so it does sound like it would make sense to do that.

However, there are a couple of lenders more open to this than most and a couple who are less open to it than most, so just be careful and speak to the lenders (or a broker) before applying.

csgohan4

making unsecured loan into a secured loan on property is generally not advised, and not all lenders will consider this as the reason to take out a mortgage

I would suggest get a broker to discuss your options and hit the debt free wannabee forums to hit that debt