Should I remortgage?

[moneyhoney]

Hi folks.

Looking for some advice. I bought an apartment 3 years ago. Outstanding mortgage = 176k. Value of apartment 230k. Personal loan 9k, credit card 4k (Yes I know....please spare lectures).

The loan repayments of the 9k personal loan are quite high, as I wanted to clear as soon as possible. So I find myself a bit short many months, hence dipping into my credit card alot.

If I were to remortgage for 190k, I could clear my loan & credit card. However, the LTV would still be a reasonable (I think) 82%. Also, I am 28 - would a 30 year term be madness?

Please help - don't know what to do.

Thanks all.

 

[Sarah Wellband]

Who is your mortgage with? Some lenders offer top up loans (at home loan rates) over a shorter term than the outstanding mortgage - First Active and IIB offer this option. Otherwise you could remortgage as a once off exercise and accelerate your repayments so that the €13,000 is cleared in a shorter period.

Sarah

www.rea.ie

 

[Devils Ad]

I don't see why not.

If you are currently struggling with the repayments ask your lender to re-finance the personal debt (including the credit card) over the same period as the existing personal loan, leaving the rest of the mortgage on the same term as before.

Instead of changing the term to 30 years ask you lender to give you a period of interest only for the whole loan until you get back on your feet.

In the meantime, don't use your credit card (Cut it up??) or if you do set up a direct debit from your bank account to pay off the full amount each month and use it sparingly.

When you are back on your feet revert to a repayment loan.

If your lender says no, shop around there are plenty who will offer you the above terms (assuming that you haven't gone into arrears and qualify for a loan that size)

Dev.

 

[WizardDr]

Remortgaging is fine..

and what many do is repay the 'equity release' portion as fast as they can even though it may have a 'longer term';

- that has the benefit of an affordable repayment;
- lower interest rate;
- less interest being paid at 'super rate' on a credit card;

The point being if you do not clear the credit card ..why not utilise secured lending option?