Secured debt consolidation into mortgage?

Darrenluke

Hoping for insight.
i have my mortgage with Halifax. Due to remortgage soon. Will Halifax allow me to move my secured debt consolidation loan into the mortgage?

CliveOfIndia

The only way to know is to ask them.

As a very broad rule of thumb, mortgage lenders are usually OK with additional lending if it adds value to the house.  But this is by no means a hard and fast rule, every lender will have their own criteria.  And of course, all the usual affordability checks will be factored in.

What is the current debt, what is the APR and what is it secured against?  In general, it's not a good idea to secure any more than is necessary against your house, due to the potential repercussions should you find yourself unable to maintain repayments.

You also need to consider the term of the loan.  Whilst a mortgage will generally offer a lower APR than most other forms of lending, it tends to be over a much longer period.  So even though the APR is lower, you can end up paying substantially more interest overall.

Additional mortgage borrowing can work, but usually only if you're able to make overpayments in order to repay the additional borrowing over a relatively short period.  And if you plan on doing this, you must check carefully whether you're allowed to make overpayments without penalty.  Often you can make up to 10% overpayments without penalty if you're on a promotion fixed-rate or discounted-rate deal, and unlimited overpayments if you're on SVR.  But each lender is different, so you must check your T&Cs carefully.

fatbelly

Darrenluke said:

Hoping for insight.
i have my mortgage with Halifax. Due to remortgage soon. Will Halifax allow me to move my secured debt consolidation loan into the mortgage?

Potentially yes

But for others reading, please don't move unsecured debt to secured. Post on debt-free wannabe for other options