The maths looks interesting on this and I can work out some figures for you.

However, this is a complicated area and I'm a bit uncomfortable just putting figures on here. It's an area where there isn't a clearcut right or wrong answer and one answer might be ideal for one person, but another in an identical situation may find it completely unsuitable. If my ideas are unsuitable I don't want to appear to have given bad advice as it would reflect badly on me.

Please feel free to give me a call though.

Adrian Garside
01489 784022

Adrian,
thanks, I think?. I have a flexible mortgage with A&L, I owe £22370.08 with monthly repayments of £158.92 which I currently pay £250 per month instead.
I took this out in 2000 and will hopefully have paid it off by Oct 2016 at the present rate. I have £4134.35 available credit and have saved £548.22 in interest todate.
I have £13,000 visa card which I am paying off at £300 per month, and a loan for £15000 which is costing £154.83 per month.
My home is ex-council and worth roughly £90,000.
Bearing all this in mind what do you advise?
thanks

Hi Bandjac

This is one of those situtions where there is a simple answer and then a whole picture answer.

The simple answer.

Yes, it'll be easier and cheaper to borrow money on the mortgage. Top up mortgages start at 6 - 7%, your current mortgage would be somewhere in the 5%'s. Since it is 'mortgage' whichever way it is then you are better off taking the cheapest option.

Whole picture answer - this really is where you'd need to speak to a mortgage adviser, but, things to consider are:

Is your current mortgage the best for you - if overpayments are your aim/need, most mortgages allow this, but quite often you pay a higher rate for the benefits of a flexible mortgage. It may be cheaper to look around. Actually, you could include this in the simple answer as well.

If you are maxxed out on credit, has that affected the rates you can achieve? Will overpayments be affordable in the future? If you added the total payments for debt you pay each month what term of mortgage would that come out to? It may be shorter than you expect.

Having said that there are three considerations against this idea - currently your debts are not secured to the house, so if you get into difficulty they can't repossess. Secondly, will the unsecured debts 'reappear' over time. And thirdly, you may be extending the term of the debts.

Hope that helps, give me a call if you want to look at the figures.

Adrian Garside

I currently have a flexible mortgage which has nearly £5000 credit available through overpayments. This will reduce my term by approximately 5 years at the present rate. I am looking to do some home improvements and want to know is it better to use this money or take out a top up mortgage. I cannot afford to get a personal loan as I have a large loan and credit card ongoing and don't think I have sufficient credit rating left for another.
You're views would be appreciated?