Anyone remortgaged?

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Soldato
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As the title really...

Myself and my Wife are looking at trying to clear some debts, partially so that I can look at a career change, and not have to pull in X amount per month.

Our house may have risen in value over the last three years we have been here, an online estimate suggests by 30k - though I appreciate a formal valuation may bring that figure down.

We're both mid 30s, have 32 years left on the current mortgage, just not sure where to start really, and if anyone has done the same? Looking to clear off a couple of unsecured personal loans, and a number of credit cards...

Thanks for any info
 
So you are looking to remortgage, to release equity in the property, to use the money released to pay off other debts, and stack it on the mortgage instead?
Is this correct?

Any remortgage will look at the levels of your outstanding debt as part of any application.
 
So it seems that you took out a 35 year mortgage, presumably to achieve affordable payments, and in three years have filled up on loans and credit cards?

No matter what you do, I would suggest taking stock and identify what you need to live each month and start living within that, otherwise you will be back to square one in a few years time.

The debts will also impact on your ability to secure a mortgage at a good rate.
 
Hikari Kisugi said:
So you are looking to remortgage, to release equity in the property, to use the money released to pay off other debts, and stack it on the mortgage instead?
Is this correct?

Any remortgage will look at the levels of your outstanding debt as part of any application.
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That is correct.
 
SpeedFreak said:
So it seems that you took out a 35 year mortgage, presumably to achieve affordable payments, and in three years have filled up on loans and credit cards?

No matter what you do, I would suggest taking stock and identify what you need to live each month and start living within that, otherwise you will be back to square one in a few years time.

The debts will also impact on your ability to secure a mortgage at a good rate.
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Oh I completely agree, unfortunately, we only had one salary (mine) for two of these years, so we had to use credit/loans.

We are both earning now, and it would be nice to use equity in the house, to clean the slate.
 
Scort said:
Oh I completely agree, unfortunately, we only had one salary (mine) for two of these years, so we had to use credit/loans.

We are both earning now, and it would be nice to use equity in the house, to clean the slate.
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Fair enough, I am not judging as I was no saint with my money in my younger years.

Just please keep in mind that interest rates are very low and possibly soon to get lower. Keep all your credit cards and loans paid on time to ensure that you get the best deal when you can renew/remortgage. One late payment could cost you a lot in additional interest.
 
SpeedFreak said:
Fair enough, I am not judging as I was no saint with my money in my younger years.

Just please keep in mind that interest rates are very low and possibly soon to get lower. Keep all your credit cards and loans paid on time to ensure that you get the best deal when you can renew/remortgage. One late payment could cost you a lot in additional interest.
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No worries, I didn't think you were :)

Just posting on MSE for advice now too.

Thanks chaps
 
I would recommend seeing a mortgage advisor, fees are low and they tend to find he better deals.

It depends on what you are using the money on as to how much they release, generally if you are using a remortgage for debt consolidation not many places will do better than 80% LTV. They are more reluctant to release funds for debt consolidation, if it is for home improvements etc they tend to be more flexible allowing 85/90%.

I'm currently possibly remortgaging (that or moving) and we will get 90% LTV for home improvement through Skipton I believe it was.
 
No1newts said:
I would recommend seeing a mortgage advisor, fees are low and they tend to find he better deals.

It depends on what you are using the money on as to how much they release, generally if you are using a remortgage for debt consolidation not many places will do better than 80% LTV. They are more reluctant to release funds for debt consolidation, if it is for home improvements etc they tend to be more flexible allowing 85/90%.

I'm currently possibly remortgaging (that or moving) and we will get 90% LTV for home improvement through Skipton I believe it was.
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Thank you for that advice :)
 
It's perfectly doable, I know someone who had around 3k on his credit card and around 4k on his mrs' credit card. Natwest were more than happy to lend the additional funds to pay off credit cards and add it to their remortgage.
 
A low mortgage rate doesn't equal the least expensive way of paying off debt, it's probably the most expensive way depending on your term left.

Edit

Hmmm adding 10k to a mortgage means you pay back 15k however you could get complicated and work out the present value backwards and see if it's worthwhile

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^Only if the debt is added over the same term as the full mortgage.

It can be added for a shorter time (as a sub-account over a shorter period) whilst still enjoying the same rate as the main borrowing.

Not that that helps the OP mind as it of course increases the monthly payment, but it is possible to make consolidating onto a mortgage cheaper than leaving on unsecured.

Still comes with it's own risks though, what with being secured!
 
Golden rule from the oldies is to clear your mortgage as fast as you possibly can. Once that's done living really starts.

I'm trying to convince my girlfriend to sink in a bit of early inheritance money she could ask for come next renewal and I am from 2017 going to be looking into £1-2k being paid off a year on top. Its actually quite startling how much you pay back in interest on say £2k over 25yrs :o

At my estimates we will knock 9-10yrs off the mortgage by doing that.
 
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