Re - financing

R

rudycrane

Guest
Looking to see if it is possible to pull all my loans into one??? Mortgage and few other loans into one monthly payment???
 
Depends on several things, including: -

  1. Value of your home
  2. Outstanding balance of mortgage
  3. Amount of debt to be refinanced
  4. Your income
  5. Have all existing loan repayments been paid on time?
Even if it is possible, before considering it, you need to look at the total cost of the exercise. Spreading a five year car loan over a 25 year mortgage is very costly, even if it cuts down on your monthly outgoings.
 
Thanks,
outstanding mortgage is around 320,000 and two loans add up to about 70, so totalling in or around 390,000. House is probably only worth around 350,000 now though. Would a bank arrange this?? I know it's a lot to pay, but reducing payments now is more important.
 
The problem I would see is that the Bank will need enough security to cover the depth -- That is 390,000 debt versus 350,000 house value, which the Bank will only take approx 80% of value as security. Have you any other fixed assets??
 
Are the €70k loans secured on anything?

If you add this to your mortgage, does that mean that the €70k is now secured on your house?
 
Yes 70k would then be secured on house. But the reduced payments make it possible to pay. If the payments remain the same as they are now, somethings got to give. I don't see how I will keep repaying both. Work is just not coming in at the moment
 
Sorry, but no lender will consider refinancing your debts as you owe more than the property is worth.

You could try to renegotiate the term of any or all of your loans, to bring down the monthly repayments. You could enquire about taking a payment holiday or switching to interest-only. These are all short-term solutions rather than cures, but they might ease pressure temporarily.

If you do get into trouble, contact the lenders early, before they have to start writing to you. You'll always get a more accomodating response that way. Try MABS also.
 
Are the banks even doing this kind of business anymore? (i.e. wrapping up lifestyle debt into property assets that are crumbling in value?)
 
Bonafide said:
Are the banks even doing this kind of business anymore? (i.e. wrapping up lifestyle debt into property assets that are crumbling in value?)
Click to expand...

Thety are, but on fairly low Loan to Value percentages, to take account of falls in value.
 
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