Hi Ian

Our fixed term isnt up until March 2009!!

Talking to our mortgage advisor today.. need to get this sorted, and quick.. they last thing I want to happen is default on our mortgage payments!

I know that if we can consolidate now, we will be 'squeeky' clean for when our fixed term ends, plus we will have been able to improve the property, therefore making the property worth more, and us in a better 'credit' position to get another good fixed term deal.

 Grrrr.. why is it so difficult!

Thanks Ian - all advice greatly appreciated!

Charlie x

Hi Charlie,

Your consolidation would take your LTV up to 90%, this may be the problem with your current Lender. How long do you have left if you have a special rate? It may be better to wait until this expires, if it was a 2 year deal and move to a lender that will allow the consolidation up to the level you require. If you take a secured loan you will not get a rate below 10% and if you do decide to consolidate this within your mortgage at a later stage there will be early payment charges. The exclusive rates offered by companies are for LTV up to 75% and your credit has to be excellent. If you are in a 2 year deal wait, you will be glad that you did. You could even make enquiries through a broker now and see what will be available and could put your mind at rest?

Charlie Choo:

Thanks for that RED ARMY.. its a mine field out there!!

Havent been able to sniff out the acceptance fee (if there is one.. which im sure there will be!) - suppose i will only get to know that if/when i apply!

 Going to opt out of PPI.. if indeed i get the option to!

Thanks very much - found this site really helpful today x

Hi-

If you would like some impartial advice on lending, please give the team here a call on 0870 027 0269.

We currently have affiliations with some of the biggest lenders and brokers; we also have access to a UK exclusive Secured Loan Rate via FirstPlus.

Thanks for that RED ARMY.. its a mine field out there!!

Havent been able to sniff out the acceptance fee (if there is one.. which im sure there will be!) - suppose i will only get to know that if/when i apply!

 Going to opt out of PPI.. if indeed i get the option to!

Thanks very much - found this site really helpful today x

Norton Finance are  a well known tv advtertised company,ive never seen any bad press about them even on this forum,so if they keep coming up as your best option go for it as longs as its a good apr,just make sure you read the small print about any additonal charges like acceptance fee's etc and payment protections

Thanks for that Andy - I do feel that this is our best option for now.. just want it to be a one hit success really.. so I think like you suggest, going through a broker, to keep the amount of searches down.

I have done quite a bit of searching.. and Norton Finance keep coming up as my 'best' option.. does anyone know of them.. for or against??

Thanks again for your help - was beginning to lose all hope and think I was stuck in this rut!

Charlie x

Hi Charlie,

From the information in your first post you may be able to get a loan secured against your property, a couple of missed payments here or there on credit cards and loans doesn't tend to cause a problem, this will only be a problem if you have missed the last 3 consecutive payments or have had defaults noted against the account(s) on your credit file.  The CCJ from 15 years ago would have been removed from your credit record entirely.

Some secured loan lenders advertise on TV who you can go directly to (nemo, picture and firsplus appear alot) but there are more lenders out there who only deal with brokers.  Each of the lenders you approached directly would do some sort of credit check against you before issuing a decision but a broker would (or should) only do 1 and then source the best offer they can for you.

If you go the direct to lender route then look out for the addition of a payment protection insurance premium / policy to your loan.  This is usually more expensive than sourcing a separate monthly policy elsewhere, it is also interest bearing and increases your total borrowing when you come to repay.

If you go to a broker then make sure that they are not charging any excessive arrangement fees (again which is added to your loan and increases your borrowing).

Hope this info helps.

No problem good luck with that.

Dont forget try appealing to your morgage lender cos im sure they do have such a process where if you can prove you will be able to afford the repayments then they may have a rethink.

Much appreciated, thanks for that.

We are, at present meeting the required payments, but with very little, if any to spare afterwards each month. This was the reason for trying to consolidate now to take the pressure off. We know we have a substantial sum due to us in around 3 years time, which would be intended to pay off the secured loan.. its not a long term fix, just needed now to ease things.

Torn about what to do know!

Thanks again for your advice.. will go away and have a think!

My best advice is dont bother trying to consolidate as the overall debt increases,the intrest rate would be higher than your morgage lender and it will take a lot longer to pay off.

Also i think your morgage lender would be unhappy with going for a secured loan as that places additional risk on the house,they want to make as much intrest out of you as possible so they wouldnt be too happy about any more debt being secured against you home other than their own,does your provider have a appeals process cos most do and if you can prove you can afford repayments they may have a re think.

The ccj should really matter anymore aslong the debt you were taken to court for has been cleared off..if the debt in question is still outstanding it is probably being held against you.

When you have defaults on credit cards etc it can be often treated as a default on a loan or morgage even,if you are at present in any arrears with any of the cards this will also be held against you,if you are not then the credit file will show you are update but the actual default itself can affect your rating for upto 6 years depending on how you are assessed by each loan provdier or card issuer.

The easiest and most cost effective way to sort out credit card debts is to cut them up and find a way of proving you are struggling to meet repayments on them(i.e because of rising household bills like gas etc),then eventually each card provider will put you a payment plan where the intrest will be frozen so in the end it will be much quicker to pay off the debts,the accounts will be reviewed every 3-6 months but aslong as you prove your financial situation is the same then the reduced pamyments will stay as they are.You dont need to go through a debt managment company for this as most creditors are happy to deal with this directly.

Going through this process can have an negative impact on your credit file but your credit rating sounds poor anyway if your lender has refused additional lending so id recomened this way and you will be a lot better offer money wise at the end of it.

Hello all.. bit new to this, but looking for any amount of advice possible. Have a house worth approx. £173,00 - with a mortgage of £135,000. Really want to clear outstanding credit card debts of £22k . Applied to current morgage lender for additional lending, which was refused. Gutted! Held mortgage for 18 months.

Now looking at secured loan, but dont want to start stamping bad marks all over credit file by getting knocked back each time, so looking for any advice on which lenders are best to attempt first!

Joint income to household of approx £1900 each month - credit history not terrible, no mortgage or loan defaults, but few late or missed credit card payments and a CCJ from 15 years ago (will that still appear?)

Really keen to get this all sorted asap - once the £22k on cards is clear will only have mortgage, one loan and utulities outgoing each month.. leaving a healthy wedge 'spare' each month to plough into improving the property.

Any advice much appreciated.. feel like im treading water at the minute!

Charlie x