Re-mortgage time!

King_Morris

Hi - like the rest of the World my 2 Year Fixed Rate (4.89%) is coming to an end this month.

The property is Shared Ownership (50%) - 23 years left on mortgage of around £78K. I'm looking to re-borrow at 5.94% but reduce the term to 20 years. I'm also able, and planning to make over payments each month to shorten the term further.

I have £7K on credit cards and was looking at taking out additional loan to pay this off and add it to the mortgage loan total, ie.. £85K over 20 years.

I realise that adding the card debt to the mortgage seems an expensive way of moving forward, but it will enable me to have alot more disposable income each month which I can then plough back into the mortgage.

2 Main Q's:

1 - Without a crystal ball - Is 2, 5 or 10 year fixed rate regarded a better move? and
2 - Should I try and pay off the CC debt via other methods?

Any help would be greatly received, as my head hurts! :eek:

unclebuck_2

1. what term to fix for will depend on the rate they offer and how you will cope with an increase. Also lenders have a habbit of ripping us off. When they know the majority want a fixed rate they increase their product fee's and each time you want one another fixed rate product thats another fee payable.

2. I would rather put CC on mortgage and overpay mortgage. Obtaining credit is hard at the moment and who knows when this will change or if it will get worse?

Gorgeous_George

1. You need a long term plan. When do you plan on moving house? As a general rule, I prefer longer term deals and have a lifetime, offset tracker myself at BR+0.74%. Rather than overpay, I can just add funds to the offset savings account.

2. It is usually recommended never to move unsecured debt to secured debt. Moreso in these uncertain times. Can you move the balance to another card at a better rate?

GG