Hi Krazi5

Answers as follows:

1. No, there shouldn't be any issue over you consolidating this into the mortgage and in most circumstances it would be the prudent thing to do as the rate on your secured loan will most likely be at least double that of your mortgage. However, do be careful as secured loan terms are often far lower than your mortgage term and if you are taking the loan over a longer term than orignally planned it will increase the total amount payable and it could even mean that you are paying more to consoldiate the loan into the mortgage. Have your broker run some calculations first to see what fits best for you.

You did mention that you had some financial difficulties:? Did this develop into defaults or CCJs? or was it just that you found your self facing potential problems so reacted accordingly to gain the loan? If you have defaults etc then this could definitety affect your ability to gain a loan in the first place.

2. As long as you have enough equity in the house from its current valuation for the loan to fit into then there shouldnt be an issue. Some lender also impose a maximum debt level that they will consolidate into the loan (even though it is still currently secured on the property) and depending on the level being consolidated and the loan existing may just tip you too far for the lender/s to allow this...again you will need to consult with your broker for tis to double check any limits the lender has in place.

3. There shouldn't be any issue with you remortgaging at any point. The ombudsman is investigating misold products, not what you currently have in place, it was the act that happened when you were sold the product that they are looking into, not whether you still have the loan or not. Remortgage away! The award you get will be based on the loan from the time you took it to the time it ceased. You can wait if you want but it just means that the award will increase a little more with each payment you make to the PPI provider. By remortgaging you will likely save yourself far more than this in short term and long term savings.

Good Luck

Hi,

I have a mortgage and a loan that is secured onto the mortgage. I fell into some difficulty financially a few years back and so got the loan secured onto the first mortgage.

I am currently liasing with the Ombudsman with regards to the PPI on this secured loan.

My questions are:

1 Now that I have this secured loan and that the interest rates are low, would I be in any position to go to an advisor and remortgage my house in a way so that I can remove the secured loan and consolidate it onto one new mortgage.

2. Would this have any problems if this was the case?

3. If this was possible, and I was successful with the Ombudsman to claim back my PPI, what would happen to my claim if I was to get this new mortgage. Should I wait for the outcome of the Ombudsman first before remortgaging? This could take over a year to process by which time the interest rates may go up.

Thanks