What is the best way to consolidate my unsecured loan into a mortgage?

Posted on 7 April 2008

Hi Katie,

I am thinking about remortgaging. I have a £138,000 interest only mortgage, a £12,000 unsecured loan and a credit card of £2,800. I am thinking of consolidating the unsecured loan into the mortgage. Can you tell me if a straight remortgage would be better? Or, I am also considering a mortgage one accounts. What is your opinion? I look forward to your reply.

In very broad terms, a One account is a good idea if your average balance on your current account is a good few thousand pounds, or you have money left over from your salary every month, because this is applied to your mortgage and you pay it off early.  The downside, is that with your current account suddenly becoming a £152,800 overdraft, some people never tend to pay off their mortgage as they can always borrow it back so easily.

With no idea of your reasons behind looking at a current account mortgage, I couldn't say for you specifically, although a broker could, after a run-through of your finances.  To speak to a fees-free whole-of-market broker at Charcol, call 0800 358 5560.

 

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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