do I get a mortgage or suffer for 2 years!

Highlanddream

Hi All
I purchased a house without a mortgage but in the process managed to rack up 24000 in debt. I can pay it off but it's a struggle, but only for 24 months in all honestly.  Would you continue to go for it or get a small mortgage over a short term , 7 years ? I keep changing my mind. 

MFWannabe

What interest rate are your debts? Are they credit cards or loan? 

If you change it to a mortgage you are then changing unsecured debt into secured debt. 

How certain are you that you wouldn’t rack up debt again if you turned it into a mortgage? 

You’d be better off posting an soa and people can advise what you could cut back on to pay it off quicker 
24 months to get it paid off in may sound a long time but it’s not really

GrumpyDil

And I believe most lenders won't give a mortgage that small

Highlanddream

I would have to borrow 40,000 and stash the rest. I think its mental thing for me, a mortgage sounds better than short term debt. 

fatbelly

Not to me it doesn't. Unsecured nonpriority debt sounds better than a mortgage.

The best thing would be a full soa with debts and aprs itemised

https://www.lemonfool.co.uk/financecalculators/soa.php

TheAble

Doubtful your bank would give you a mortgage for debt consolidation. But even if they would, it isn't sensible to put your home at risk for what is presumably consumer debt.

enthusiasticsaver

What is the debt?  Credit cards, overdraft or personal loans?  What interest rate are you paying and why do you say you will be in debt for 2 years? If you plan on borrowing £40k over 7 years that does not sound as appealing as £24k over 2 years and is bound to be more expensive. 

EssexHebridean

Debt is debt, ultimately - to a degree there is "good debt" -v- "bad debt" but your falls into the "good" category anyway - "Debt acquired through purchasing somewhere to live" I seem to recall was the phrasing Martin always used - IF I am reading correctly that you used some cards or loans towards the cost of purchasing the property.  If you can avoid transferring currently unsecured debt into secured, that would be desirable. 

I think your first port of call is to put together your SOA (Statement of Affairs) and post it in here so we can see the breakdown of the debt, what the interest rates are, and how stretched your budget is currently. We may well then be able to offer suggestions. 

gwynlas

If you can pay it off over two years then please do so it is far better in the long run than paying interest on a mortgage over an extended period. If paying it within the two years would take all the joy out of life then cut yourself some slack and reduce the payments in order to clear it within three to five years. Clearing credit cards means that you can be offerred higher credit limits and/or lower interest rates so it might well be worth looking into things like balance transfers.

LegoHead

you really need to do a SOA so all the facts are there. At the moment just appears you wanted to come here to justify getting this loan/mortgage. As you keep changing your mind I dont think having cash stashed away is sensible. I have lower self control with spending and I know my best approach with my debt was attack it full on, every spare penny was paid immediately to debt. I sold my car and everything I could to do it.

Do a SOA and people can help you better.