consolidate

[anniemac]

I have about 40,ooo in loans and credit cards have small mortgage, made a mistake in taking out loans and using my credit card to buy and do up my home instead of re-mortgaging! asked bank and they now say no to re-mortgaging and as we have a tracker mortgage I don’t think it would be a good idea anyway, should I look at a secured loan, and I am not sure why we would have been turned down, except we are both self employed not earning a fortune but covering payments of over 2000 per month, we did have a payment returned unpaid last year but it went through the second time, have checked out credit references with the regulator and its grand, totally confusing

 

[Vanilla]

If you have a small mortgage I assume the repayments of 2000 per month include loans and credit card? If you have only applied to one bank you could try others or a broker. The usual advice about consolidating short term loans into a mortgage apply- you will end up paying a huge amount of interest over the sum if your mortgage is over a long period, but if you try to repay over a shorter period ( and are disciplined) then it could work out okay for you. It is a relatively small sum and if you end up having to move bank and remortgage then you will end up paying fees of 1200 to 1500 or thereabouts so maybe explore a CU loan or a good shorter term personal loan too and check out the rates. As we say here in AAM, crunch the numbers and see what makes most sense.