question category: Debt Consolidation

How can I remortgage to release some equity to pay off credit card debt ?
Submitted on: 26th May 2010 by Non-Member | Total Answers: 1

I owe £30,000 in credit card debt and bank overdrafts inherited from my ex husband, and a £25,000 loan. I have a house with at least £200,000 equity in it. I want to get a mortage product which will allow me to change the existing £80,000 mortgage from interest only to repayment, and also to cover the loan. The credit cards will settle for £10,000 if I pay off the balances.

I am being penalised for bad credit rating which is preventing me from borrowing money from the substantial equity I have in my house, which would enable me to settle all my debts and continue with one monthly payment on a repayment mortgage.

Who can help me? The credit card companies are getting very threatening as I can only pay small amounts below the recommended repayment amounts, from my meagre wages.

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Re: How can I remortgage to release some equity to pay off ...

I would advise you to speak to a mortgage broker that will be able to look into what your are wanting and see if there is a product out there suitable for you. They will have access to more products than you mortgage lender.

You can search for an authorised mortgage advisor in your area via the Financial Services Authority website www.fsa.gov.uk or by calling 0300 500 5000

Alternatively, you could speak to a debt advisor who may advise another solution once they have reviewed your current circumstances.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you have a debt problem, we can help you find the best solution for your situation. Debt Advice Foundation provides a free, confidential helpline and can advise you of all your options. Click here to find out more.

Submitted on: 4th Jun 2010 by Justine Member

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