We currently have an Abbey mortgage, a loan with black Horse finance, and 4 credit cards.

The idea is –

Get rid of the black Horse Loan

Get rid of the 4 Credit Cards (literally pay them off, shut them down and cut them up!)

Have 1 Monthly payment for our mortgage.

We would have no other outgoings (apart from food etc)

We are very happy with Abbey National and would like to stay with them (we also took out a 5 year fixed rate with them ,so would probably be easier to stay anyway if we can?)

I have Online access to our credit report and it shows –

Lender                         Balance                        Monthly payment

Abbey Mortgage          £158,878                     £1022                          this is over 275 months and we have just paid the 11^th month

Black Horse                 £18,115                       £241.80                       this is over 120 months and we have just paid the 7^th month

Barclay Card                £3,150                         £75                              this is about the minimum payment I make

Lloyds TSB Card         £2,600                         £75                              this is about the minimum payment I make

Capital one Card          £800                            £75                              this is about the minimum payment I make

Mbna/Virgin Card        £5000                          £150                            this is about the minimum payment I make

                        Total    £188,543                     £1,638.80

The abbey Mortgage is 23 year term fixed rate of 5.39% for the first 5 years.

I have noticed on our credit report that we have had 1 late payment for Barclay card which was an oversite on my part, we have also had 6 searches in the last 12 months.

We have not had our house valued, but similar houses in the area are valued at around £210k.

My P60 certificate 2006-2007 shows an income of £76571.28 for the year, and I have been with my employer for 2 years.

Wife's P60 for 2006-2007 shows an income of £10278.99 for the year, and she has been with her employer for 8 years.

We would like a mortgage of £190k fixed for 5 years as we have at the moment, over a 25 year period.

If you can make sense of all the above, then do you think this is possible???

Hi,

You have 4 years left on your current product and there will be redemption penalties if you move. You should be able to secure further borrowing from the Abbey to consolidate the extras but you will have to approach them directly for the decision. Your income will allow the amount you need and the credit problems are quite minor. If you are unable to, you may be able to change lenders if you are prepared to pay the penalty. Abbey have a funny way of calculating this amount and it may be a realistic figure should this be the only route available. I would use the 2nd charge secured loan option as a last resort but it could help for the 4 remaining years on your current product and then it can be consolidated. Be sure to understand the early repayment charges linked to this type of loan as they can be a bit steep.

thanks for suggestion, i m recently agree with you ,there are few people who share this type of information thanks a lot.

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With house prices falling you are looking for a high LTV loan. Would be amazed if you can get a good rate (without big fees) on a new loan. Also you are likely to get hefty redemption charges on your mortgage if you leave abbey so unlikely that remortgage is the route to go down. Unless Abbey can offer a further advance on your existing 1st charge then a second charge or other unsecure consolidation may make the most sense. New CCA regulations make settlement costs of 2nd charge far more reasonable than the past (1 months penalty interest) you just need to make sure you don't get hit with unreasonable single premium payment protection costs on these loans.

May be best to consolidate unsecured debts into lower apr credit cards or focus on paying these off one at a time. If you can't afford to do that then maybe you need to look at your budgeting to see where you can reduce expenses. Credit costs will only go up the next 2 years as banks reprice their risk and hoard cash to protect against clouds that are building over the economy

good luck