Advice Please

PeterP_2

I brought my flat 2 years ago and the fixed rate term is about to end.
I have credit card and overdraft debts of £13,000.

The about left on the mortgage is about £70,000.

What is the best option, I'm considering staying with my bank and re-mortgaging, taking out an additional £13,000 to clear my debts.

My exsisting rate is: 5.09%

What are the pro's and cons?
Anything else to consider?

Thanks in advance

UK007BullDog

What value does your flat have? How old is your flat? What is your income before tax (and partner if there is one?)?

Trying_to_be_good

Would the normal salary multiples cover the borrowing?

What is your credit rating like - missed payments etc?

PeterP_2

I brought the flat for 72,000, I'm not sure of it's value now.

Credit rating is good, no missed payments.

Salary multiples??

My salary is just under £21,000. I'm in the flat on my own.

Thanks

UK007BullDog

Well you need to find out how much the property is worth now. It looks like you had a 100% mortgage?

What is your income before tax?

I think you need to read some of the 100% mortgage threads.

UK007BullDog

Unless your flat has gone drastically up in value like around £130K or more you will not be able to borrow extra. But then it also depends on your income as that has to support your borrowing.

Most new build flats have stayed static in price or lost value, just to let you know. So I suggest you phone up a couple of local estate agents and ask them what they thought it would be worth (pretend you might want to put it on the market) and then take another £5 - £10k off their recommended price range.

PeterP_2

Would I be able to get a loan?

What if I just wanted to re-mortage, what should I consider?

UK007BullDog

Well as you are not telling us your income we cannot tell you what you can or cannot do.

If you do a straight remortgage then they will offer you their current products for existing customers.

Was it Northern Rock? Then you might be in for a problem.

Give us more info then we can answer a bit more specific to your needs.

PeterP_2

My salary is £20,900, sorry I edited my post earlier to mention that.

My mortage atm is with Halifax.

Thanks again.

UK007BullDog

I think you will/might have to stay with them and just do a straight remortgage. You might want to look at 0% creditcards to balance transfer your CC's.
You could try and get a personal loan but 0% cards are cheaper. Check out the CC board for tips.

Also find out property value then you might change lenders if the value has gone up quite a bit.

Good Luck!