Hi,

The first place to go should always be your existing lender by way of a further advance. C&G allow this facility and it is better to place the further borrowing on a non-tied product so that the total can be re-mortgaged when appropriate. Have you tried them for this? It would be inappropriate to leave them as the redemption would be to high I assume. I can't see a problem in regards to income, it would all depend on payment history and credit score along with an up to date valuation.

Ian,

Thanks for your responce, my present mortgage is with C & G with 1 year to run on the fixed deal.

Household joint income top line approx 46K

Kind Regards

CH

Hi,

You have highlighted the problems that arise from using secured loan lenders without them imparting the full facts of the agreement. You are right that the PPI has a reduced refund amount but this is basically illegal if the insurance provider refuses to cover you for the amount agreed for the remainder of the original loan agreement. In effect you have purchased the policy and are entitled to use it's contents as agreed, I say this because you feel that you would have to take out another form of protection. All you would require is cover for the shortfall that will exist if you consolidate all of your commitments. Let me give everyone an idea of what commissions these loan companies receive.... up to 60% of the premium :0. That equates to a 5000 policy delivering a comm of 3,000, no wonder there are low refund rates!!! But until the public refuse these policies they will continue to clear your bank balances out, but as you say the policies are cloaked in underhanded ways and I'm sure that during the year to come the FSA will be producing further regulation for these policies.

Back to the options..... How much is the income in the household and who is your current lender? With this information I would hopefully be able to recommend a course of action.

Just to say reading the forum, made me realise that imp not the only one in this situation even though at time it feels like it.

My problem, my debts have risen over the last number of years and now feel that they are getting on top of me.

I’m married with 3 young daughters.

My wife had been out of work for over 3 year for various reasons, but in the last 6 months has started work again, but financially we don’t feel financially any better off due to the debt I had accumulated during the period she was out of work.

I have a mortgage for approx £127K

A secured Loan with Picture for approx £33K + PPI 13years to run on it

And Credit card debt of approx £15K

The house value is around £190K

Trying to get my finance's in order I decided to apply for a loan with my bank the Alliance and Leicester to pay off the credit cards. This would have saved me approx £300 per month over a five year period, however my bank declined the loan and gave my details to Freedom Finance who in turn have got companies ringing me up to offer to assist and accumulate all my debt under one secured loan.

I’m not to happy about doing this, when I took the Picture Finance Loan out, I opted to take out the payment protection insurance which was around £37 per month, I was unaware that they added the premium to my overall lending so if I cancel this loan to take out another one I will end up paying back more than I borrowed because they will only give about 13% of the PPI premium back if cancelled before 5 years.

I know that I could ask Picture to add the £16,000 to my existing agreement, but was I was trying to keep the length of period of borrowing down so I feel that I am getting on top of my debts.

As any one got any advice, I do need to sort this out soon but a bit confused and worried which way to go.

Thanks

CH