secured loan

[andydingdang]

I have a house worth 162,000 and a mortgage for 145,000. I have debts of up to 20,000 and would like to get an secured loan to pay them off. My current mortgage is a 3 year fixed mortgage and I would like to know if when i remortgage in 3 years will mortagge companies look down on me for having a secured loan or does it not matter.

[ian.miller]

Always try and extend you existing mortgage rather that take out a loan, interest rates are usually MUCH more favourable.

if you are on a fixed deal and you have been a good customer else ways then they shouldn't have a problem doing something (although as it takes you over your house value they might) but always start there rather than going for these very bad value loans from tv etc.

Plus having multiple charges on the property can be a hassle when selling.

[Loosehead]

You won't get a secured loan that takes you up to over 100% equity with a reputable company, in fact mostly they don't go above 90% so you'd be looking at loan sharks are us! You'll probably have a similar problem extending you mortgage as well.

[Oneeyedvic]

just to slightly contradict you lossehead - Bradford & Bingley and Northern Rock both do 130% and 120% mortgages respectively and both are respectable companies. That said, neither would be of any particular help in your scenario andy - they are total mortgages.

I would suggest talking to your existing provider and getting a 'further advance' - this may be on a variable rate though. If the 20K you are looking to pay off is predomiately credit cards, then anyone of the 'tv rip off' companies will still be vastly lower than your credit card repayments.

But always remember - your house is at risk if you do not keep up repayments blah blah blah!