re-mortgage advise please

mart_2

We re-mortgaged at the begining of the year and would like to again now (although we are only 11 months into a 5 year fixed)

We are paying the minimum off our credit cards and have been for some time, so have decided to consolodate all our debt (i know this is sometimes not advisable, but we see it as the best for us at the moment)

We currently have an Abbey mortgage, a loan with black Horse finance, and 4 credit cards.

The idea is –

Get rid of the black Horse Loan
Get rid of the 4 Credit Cards (literally pay them off, shut them down and cut them up!)

Have 1 Monthly payment for our mortgage.

We would have no other outgoings (apart from food etc)

We are very happy with Abbey National and would like to stay with them (we also took out a 5 year fixed rate with them ,so would probably be easier to stay anyway if we can?)

I have Online access to our credit report and it shows –

Abbey Mortgage balance £158,878 - £1022pm this is over 275 months and we have just paid the 11th month
Black Horse balance £18,115 - £241.80pm this is over 120 months and we have just paid the 7th month
Barclay Card balance £3,150 - £ 75pm this is about the minimum payment I make
Lloyds TSB Card balance £2,600 - £75pm this is about the minimum payment I make
Capital one Card balance £800 - £75pm this is about the minimum payment I make
Mbna/Virgin Card balance £5000 - £150pm this is about the minimum payment I make

Total debt balance £188,543 total payments per month £1,638.80

The abbey Mortgage is 23 year term fixed rate of 5.39% for the first 5 years.

I have noticed on our credit report that we have had 1 late payment for Barclay card 2 months ago which was an oversite on my part, we have also had 6 searches in the last 12 months.

We have not had our house valued, but similar houses in the area are valued at around £210k.

My P60 certificate 2006-2007 shows an income of £76571.28 for the year, and I have been with my employer for 2 years.
My wife's P60 for 2006-2007 shows an income of £10278.99 for the year, and she has been with her employer for 8 years.


We would like a mortgage of £190k fixed for 5 years as we have at the moment, over a 25 year period.

If you can make sense of all the above, then do you think this is possible???

Jonbvn

If you already have a fixed rate deal, then there will be early redemption charges on this. These are usually quite big, say 2 or 3%, which would make a remortgage very expensive.

You really have to pay off those credit cards ASAP, since they charge large amounts of interest.

17Dave

It may be worth approaching the Abbey for a further advance - the rate will almost certainly be better than your credit card / loan.

I agree with the op that the redemption fee will cost too much to make a re-mortgage viable.

dunstonh

Further advance from Abbey seems logical.