Remortgage borrow extra or not?

Mick_Cross

Hi Folks,

just about to remortgage and I'm after any thoughts or opinions. I recently started a £25k loan to consolidate credit card debt, my mortgage rate is about to expire and I'm considering adding the loan to the mortgage to reduce monthly payments and allow room to make overpayments. Figures as follows;

loan £502, current morgage £781 = £1289p/m

new mortgage, 5 yr fixed , amount £135k (with loan amount added) over 13 yrs = £976

So I could make a £200 overpayment bringing the monthly paymeny to £1176 and still be £113 pm better off. I know I would pay more in interest over 13 years than i would in 5ys off the loan term.

Any thoughts. opinions, pros / cons?

thanks in advance.

Unicorn_cottage

Adding unsecured debt to secured debt is never a good idea. What happens if you can't afford to pay your mortgage?
Try the debtfreewannabe forum...you will get some good insights there. https://forums.moneysavingexpert.com/categories/debt-free-wannabe