Posted on 10 November 2011 by KATIE
My mortgage is £187 per month, I took out a secured loan and the repayments are £218 on top of my mortgage, would it be cheaper to remortgage and use the money to pay off the secured loan?
It is very likely that you could reduce your monthly outgoings by remortgaging and consolidating the secured loan. However, you need to consider whether or not this is worthwhile as it is also likely that it will cost you more in the long run. This is because whilst mortgages have cheaper interest rates they also tend to run on for longer and this can lead to the eventual outlay being higher.
You will also need to check whether or not there are any early repayment charges on both the secured loan and your existing mortgage. If there are it is quite possible that having to pay these will outweigh any benefit gained by remortgaging.
I believe we can help you make the decision and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the details of your secured loan, they will then be able to advise you on your situation.
Answers provided in response to Ask the experts 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 necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.