# Should I remortgage??



## jeny (18 Oct 2008)

Going on the basis that I actualu would get approved for it would I be mad if I was to remortgage my property at the moment?

Currently pay
1200 PM mortgage             27 yrs left 
193   PM Top Up                 8 yrs left
170   PM Personal Loan       10 yrs left
120   PM Credit Card

Total 1563


We were planning on consolidating all them loans plus 15 k to convert attic into a bedroom for our daugther and adding some value to the house.

This would make the 1 repayment abour 1310 PM, I am wondering if in the way the economy is its a good idea to remortgage ??

Or would we be better sitting and waiting?


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## Diziet (19 Oct 2008)

Don't you think you owe enough on loans already?


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## cancan (19 Oct 2008)

Paying off short term loans over that many years is nuts.

I'd be more concerned by getting out of the hole you are in, rather than asking the bank for a bigger shovel to build a bigger hole.

The above totals 427808 in repayments as is, and that excludes the credit card.

But i don't know your income from the above, so cannot determine how big the hole currently is.

My basic maths tells me that if your quoted numbers are correct, the new 15k attic would end up costing you 43872 (assuming 30 years and excluding the cc) more that your current setup (and even the numbers you quoted for the new mortgage look a little suspicious) - over how many years are the new terms, and what is the extent of the cc debt?


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## Flax (20 Oct 2008)

It sounds like you're used to buying things on credit.

It might be a good idea to try to break this mentality now - don't remortgage.


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## Raskolnikov (20 Oct 2008)

What kind of mortgage do you have and what rate are you paying at the moment?


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## Brendan Burgess (20 Oct 2008)

hi Jeny

Check out the Key Post for this forum. No one can answer your question without knowing the full circumstances. 

There is no harm in buying things on credit so there is no need to break this mentality.  

If you are bad at managing money and are living way beyond your means, then borrowing more money will make the problem worse.




> The above totals 427808 in repayments as is, and that excludes the credit card.



This is meaningless. It is adding euros from 2008 to euros from 2028, which makes no sense.  

Brendan


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## cancan (21 Oct 2008)

> This is meaningless. It is adding euros from 2008 to euros from 2028, which makes no sense.


 
The poster is adding 2005/6/7 debt to 2008 debt already and wants to add them all to 2028 debt, which makes those figures valid.



> There is no harm in buying things on credit so there is no need to break this mentality.


 
They're are an awful lot of people out there who may disagree with this statement right about now. If your statement was true, our banks stocks wouldn't be worth the same in toilet paper.

If people tried living on what the earn, and not what they can borrow, people would be a lot better off.

It's called reality, and sometimes it hurts. When you are in debt, more debt is never the solution.


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## jeny (21 Oct 2008)

Current mortgage has 27 Years on it, the new one would increase that to 35 (Were Still Young) We dont intend on staying in our house forever, but to increase the size of it would make it fit us for a longer period.

I recently took a 20k Pay cut to facilitate a change in carear but our current incme is about 60k per annum.

The loans we have are for home Improvements & Car Loans.

I am not in the slightest bit bothered by the Longer term amount the conversion will cost my main point is right now- to remortgage it would actually be cheaper than what we currently pay, and in 10 years (when the original loans would have ended) We would be in a better position financially to perhaps pay a lump sum off.


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## cancan (21 Oct 2008)

Thanks for the update.

Your current repayments would be 427728 excl the cc.

Your proposed repayments would be - 656460

So what you are proposing will end up costing you an extra 228732.

Is what you want to do really worth 230k?

You are exchanging short term gain, for long term pain.

If you feel that this restructuring is worth 230k to you, knock yourself out.

If the long term doesn't bother you, well you know what you are paying now, and what you would be paying under the new system, but the long term should bother you.

Unless there is a short term emergency that necessitates a move like this, it's time for some lifestyle changes I am afraid.

Also, the fact that your car loans are over such long periods makes me think that there is some disconect with reality going on here.
You'll be still paying for them when they are beyond their useful life.


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## jeny (21 Oct 2008)

Well I guess the pay cut i took could be considered as a short term emergency plus the generaly Economy we are currently in. To do this remortgage would reduce what we currently pay by about 300 euros per month.

I understand the figures you repay, of putting your car and credit card debt into a mortgage and paying for them over 35 years is stupid, however as you can see we are in debt and the debt is not going anywhere fast , but to put it into one repayment would make it more manageable, would increase the house size to satisfy us for the long term and you would not notice the additional funds for the car and card being paid off ??


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## cancan (21 Oct 2008)

Well, finding a bank to convince to loan this would be difficult I would think.

Maybe sell the car, and reduce your debts?

Some fine bangers going cheap out there at the min.


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## jeny (22 Oct 2008)

Car selling in this market is not possible I had it up for 8 months and nothing! and it was priced low! Its not an option Im afraid.

I stated that this post was on the assumption that I got the loan, I am well aware considering the economy is bad, house prices are down and I am new in my job that the chances of getting a loan are low, however most of the loans I have out are with my mortgage provider anyway, so in my respest Im just consilidating them together and payin the company more in interest.

I think I will give it a go and see the figures. Does hurt to apply anyway.


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