Can we consolidate £10,000 worth of debt into a mortgage?

Posted on 8 February 2008

Hi there,

My girlfriend and I want to get a mortgage, but we both have about £5,000 of debt. Would it be possible to consolidate this debt into a mortgage without any deposit to lay down. It would be our first mortgage. What lenders are best to contact if it is possible?

Thanks in advance.

What you're talking about here is borrowing £10,000 more than that property is worth.  Some lenders do still  do 100% + mortgages, but I would not recommend it now, as there is a strong likelihood that properties will fall in value this year.  This could leave you in negative equity.

Once you have thought through your options, you need to speak to an advisor before anyone can say which lenders are best for you, as it depends on your income, and what sort of repayment rate you want. Charcol advisors have access to the whole of the market and are fees free; the number is 0800 358 55 60.

Best of luck.

Category: Consolidation of debts

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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