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Remortgage to pay debt

Clownfish68 · 2019-04-16 12:19:09

Hi everyone, Long time lurker first time poster here. So as the title suggests remortgage to pay debt yes or no? Initially on the advice of my mortgage broker my immediate reaction was why would I waste equity in my house and told him that would not be an option. Anyway I have 2 credit cards with a total of about £5k on…

Comments

enthusiasticsaver Posts: 16,245 Ambassador

20 April 2019 at 10:06PM

If you are talking about adding £23k to your proposed mortgage that takes it up to £200k. If the property is £218 you will not even be paying a 10% deposit so your LTV will be higher than 90% and therefore a higher interest rate. Also converting unsecured debt to secured is not sensible and putting it on your mortgage means it will take much longer to repay. Very bad advice.

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