loan to pay off arrears

[brose]

A year arrears in mortgage. charged �50/monthly, tacked on end of mortgage. Would a loan to pay off the arrears be cheaper (from interest point of view) than the monthly arrears fee? The drawback being that the loan would be paid back monthly (as opposed to the arrears fee at the end of mortgage term).

[R1Geezer]

depends how much, but yes if they are charging �50 a month just to be in arrears, I would imagine savings are possible. Bear in mind also that all those �50's will be compounded massively by the end of the loan too.

[factor-fiction]

Wouldn't the interest on the unpaid mortgage instalments continue to be added and eventually have to be paid for on top of the �50 a month arrrears fee?