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consolidate mortgages or not
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ShowMeTheM0n3y
Posts: 2 Newbie
so hit on difficult times, took out 2 secured loans on house so have mortgage plus these 2 loans to pay. I can pay them each month and havent missed payments but looking to reduce the outgoings. SO do I continue as is paying £491 secure loan 1, £547 secure loan 2 plus £707 for mortgage or look at putting everything into one mortgage to reduce costs?
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Comments
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How much and what length are are loan?
And what were they for?
Do you have unsecured debt?If you've have not made a mistake, you've made nothing1 -
Consolidating will not reduce the costs.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
The 365 Day 1p Challenge 2025 #1 £667.95/£301.35
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secured loan 1 18 yrs left 62K to pay costing me £547 a month
secured loan 2 18 yrs left 25k to pay costing me £412 a month
I looked at mortgage figures and hoping i could lump these into one mortgage at around £1400 a month rather than my £1738 a month currently
(thats 2 loans plus the original mortgage) which would be around £300 a month better off and would save me money in the long run.
I would be reducing the term of the extra loans too to 15 years
I just dont know if thats the right way to go about it - it looks like a no brainer to me
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Is that due to high interest rates on the secured loans?0
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If you are adding £87k to your existing mortgage and the new repayment will still be £338 less per month over the same term (or less) it is worth considering.ShowMeTheM0n3y said:secured loan 1 18 yrs left 62K to pay costing me £547 a month
secured loan 2 18 yrs left 25k to pay costing me £412 a month
I looked at mortgage figures and hoping i could lump these into one mortgage at around £1400 a month rather than my £1738 a month currently
(thats 2 loans plus the original mortgage) which would be around £300 a month better off and would save me money in the long run.
I would be reducing the term of the extra loans too to 15 years
I just dont know if thats the right way to go about it - it looks like a no brainer to meIf, however, you are extending the mortgage term the result may be different.Any penalties for earlier repayment of the two secured loans?1
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