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should I add a personal loan onto my mortgage?

Last post Tue, Aug 17 2010, 2:58 PM by foxydog. 5 replies.
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  •  Tue, Aug 17 2010, 2:58 PM

    Re: should I add a personal loan onto my mortgage?

    Sorry Zeb, meant to type more before posting, Anyway you are right, the mortgate is less than 25,000. and it is the lender that has rung me to suggest this. The mortgage is so flexible, I think i will take up the offer.

    • Post Points: 5
  •  Tue, Aug 17 2010, 2:54 PM

    Re: should I add a personal loan onto my mortgage?

    thank you Zeb,
    • Post Points: 5
  •  Tue, Aug 17 2010, 1:08 PM

    Re: should I add a personal loan onto my mortgage?

    I would actually suggest otherwise. I WOULD consolidate the loan to the mortgage

    The fact that it will be secured against the property doesn't really mean anything. Your mortgage has been secured against the property for the last 20 years and has this worried you that it is this way? Unless you plan to default on the loan or mortgage you are in the exact same circumstances as you have always been.

    If the loan will save you £1000 then to take the whole loan on a fixed rate will cost very very little more...maybe £10.

    Because of the size of the loan the chances are you are going to source a Fee Free mortgage which means no arrangement fees, no legal fees, no valuation fees.

    The only danger with this loan that I see is finding a lender that would be prepared to do it for you. I am assuming the total of the loan and mortgage is a small value (less than £25,000) and you have already said that the term is short (less than 8-10 years). Most lenders will not want to get involved with this but speak to your own lender as they may be able to help...although they may not be able to offer a fixed rate.

    I wouldn't even worry if you have to go onto the lenders variable rate, if interest rates rise on this it will have a minimal impact on the loan repayments with the loan being so small.

    In short, if you can get a fee free loan (look for standard variable rate mortgage or specific fee free loan) with no fees at all then I think this would work out for the better for you

    • Post Points: 20
  •  Tue, Aug 17 2010, 11:45 AM

    Re: should I add a personal loan onto my mortgage?

    Thank you, you have given me some good advise. I had not thought about the fact that the loan is secured against the house.
    • Post Points: 20
  •  Tue, Aug 17 2010, 11:39 AM

    Re: should I add a personal loan onto my mortgage?

    No leave the two seperate for all the reasons you have already mentioned, the Loan is at a fixed rate and so won't change in payment and you will have this paid off in 4 and a hlaf years, not sure how you see this saving you money if you add it to your Mortgage as there will be a cost or costs assoiciated to add this to your mortgage.

    Plus if it is just a Personal Loan it will be un-secured, whereas the Mortgage will be secured against the Property, if you add the Loan to the Mortgage this will also be secured against the property

    Good luck

    • Post Points: 20
  •  Tue, Aug 17 2010, 11:08 AM

    should I add a personal loan onto my mortgage?

    I have 5 years left on my mortgage and four and a half years on a personal loan. To add the loan to the mortgage would save me £1000. as of today with the rates as they are. My only worry is if the mortgage rate does go up. The loan is a fixed rate. Whate would you do?
    • Post Points: 20