consolidate debt into mortgage?

A

anna457

Guest
Hi, I am considering consolidating some debts that myself and my husband have into our mortgage. Our current mortgage repayments are about 1000 euro per month. We have a credit union loan and a car loan with total monthly repayments of 1500 euro per month. Our joint monthly net income is about 6500 euro net.

We don't have any bother meeting the loan repayments but are thinking of putting them on to our mortgage to get the lower interest rates. We would then overpay our mortgage by the 1500 every month ie. pay 2500 into mortgage. Is this crazy or does it make sense? Do the overpayments come off the interest or the original loan? Any input appreciated.
 
A simpler way of achieving the same result is to structure your new additional borrowing over a short term so that the repayment on the extra bit is €1,500 per month. The extra borrowing doesn't have to be over the same term as the original mortgage.

Liam D. Ferguson
www.ferga.com
 
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