advice uregently needed - debt consolodation and secured loans

[nellieloula]

I'm hoping someone has experience of this and can give some good advice. We need to borrow £35,000 - we both work freelance so can't get an unsecured loan for this amount (we've exhausted that route)- we also owe a load of money to financial agencies who have just announced this in the last few weeks. So are considering a consolodation loan secured on our house. It makes lots of sense in many ways but I'm just unsure as to what the risks are (apart from the obvious not paying the debt and mortgage) We would be able to manage both I think as the debts we currently have are unsecured but on massive interest rates given our employment situation; a secured loan repayment would be lower I'm told so that shouldn't be a problem.

If anyone has any experience in this, could you let me know how it has worked for you? thanks a lot

Can you not just remortgage to pay off the creditors. More straightforward and most likely cheaper than taking out a second secured loan with 2nd charge on the property.

Can you not get a further advance on your existing mortgage? Is there equity in your house?

Thanks for answering - no, we can't remortgage or extend for another year when we renew the deal we made. I think at that point we can roll any loans into the new agreement.