Taking out a loan before switching mortgage deal

HDON91

Hi,

I'm considering taking out a loan to consolidate some credit card debt. My 2 year fixed mortgage is up in September and I'm wondering if applying for a loan now will affect my new deal even if i was to stay with my existing lender?

Don't know much about this as this was my first home purchase so any advice would be appreciated.

TIA

Brie

Don't do it. 

It's a common thing that if someone manages to get a consolidation loan all that happens is that they double the amount of debt they have.  I know the intention is to pay off the debts but if you still have the credit cards and the habit of spending on them you will soon find that you have the loan to pay AND the CCs up to the hilt again.  And none of that will look good come remortgage time.

So - my suggestion is that you pop over to the debt free wannabe forum, look for the statement of account template (one of the top stickies), fill that out and post it there to get some good advice on how to smarten up your budget so you can get rid of the CC debts.  

Also - have a look at your credit record to see what can be spruced up there too.