Secured loan advise needed

zippygeorgeandben

My word - do not do it, just don't.  It's all cons, no pros.

[Deleted User]

MalMonroe said:

Loubel10 said:

My house is valued at 200k (March 2020 valuation) and I owe c125k so I actually have c75k equity. 

How about selling my house, rent for a while pay off my debts and then save to get another mortgage. 

I literally know nothing about secured lending other than the debt is secured against your property

I'm having difficulty believing this is a genuine post. You seem to have a very cavalier attitude towards money and housing. 

Having done what you are suggesting, that is sell my house, rent with the intention of buying in the future, I can tell you that it is virtually impossible to get yourself back onto the housing ladder once you've stepped off it. I'm still renting 10 years later and house prices have risen greatly since I sold my property. Worst thing I ever did.

You don't really have that vague equity of £75k because not only do you still owe on the house, which means it isn't yours yet, you don't know how much you will get for it, no matter how much it may be valued at, especially now during coronavirus, which is a very bad time to sell. A recession is looming. In fact, it's started. 

Can you get a remortgage? I feel that would be the best option here. But I'd also advise you to get learning about how finances work, especially if you are a homeowner!

How very condescending- thank you for your utterly useless and unnecessary reply. 

[Deleted User]

Wow, i think it is your own reply that falls into the condescending, useless and unnecessary 🤔 

This member replied, giving you an insight into their situation to give you another perspective not to tell them they're useless 😣 

All members here can be learned from, kindly reign in your hostility and look at where your 55k salary could be used to tackle the debt.

macman

Why do you want to consolidate your debt? Consolidation doesn't reduce it, it just extends the repayment period. You may pay less per month, but the total amount repaid is increased. Don't be naive.
On £55Kpa, you should be able to repay £1K pm and clear your debts within 4 year.s

[Deleted User]

Thank you Macman you are absolutely right! I think I need to be disciplined with my spending - will be going through my outgoings meticulously today and really grip this by the horns!!! 

Aran76

Hi Loubel10,
            This is a near identical situation to which I found myself in some years ago, £40k of unsecured debt with a £55k salary. The first step is to stop increasing the debt, it seems you're there already! Are you able to re-mortgage currently? If you can then you'll hopefully be able to secure a good rate and perhaps you can borrow £20k through that to pay the most expensive debts off and then do your best with the remainder, maybe shifting to 0% credit cards.
Like most on here I would strongly advise against taking out a secured loan on your property with a second lender. 

zippygeorgeandben

Loubel10 - You might want to have a quick read of the sticky at the top of the loan thread.  Similar thought process back in 2016.

BigBadJonno

I did exactly that in 2007 and am still living with the mess. DON'T DO IT! Deal with the unsecured debt in any other way, but don't secure it against your property.