Tradefair & Financials
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My cousin's main asset is his house which he needs to remortgage to raise 50% of its value to pay his sister her share of their inheritance.
He's missed some payments on loans/credit cards (no CCJs but has been a bit muddled with his finances) but will be able to clear nearly all of the balances by cashing in an endowment and using other cash. At the moment he's treading water meeting repayments until he cashes in his endowment.
How likely, if at all, are missed payments to affect his ability to get a mortgage loan, particularly if he clears his loans/credit cards when he cashes in his endowment? Presumably missed payments would have an effect on the rate he would get.He wants to pay it off max 10 years (I would think ideally a 10 year fix) as he will be close to retirement age by then.
I've worked out that if he can fix at around 5 or 6 per cent (not sure if that's realistic) he will be paying out less on his mortgage as he is servicing his current loans.
My main worry is that obviously the mortgage will be secured on his house whereas the current loans are unsecured.
Any advice greatly appreciated.
Thanks
He's missed some payments on loans/credit cards (no CCJs but has been a bit muddled with his finances) but will be able to clear nearly all of the balances by cashing in an endowment and using other cash. At the moment he's treading water meeting repayments until he cashes in his endowment.
How likely, if at all, are missed payments to affect his ability to get a mortgage loan, particularly if he clears his loans/credit cards when he cashes in his endowment? Presumably missed payments would have an effect on the rate he would get.He wants to pay it off max 10 years (I would think ideally a 10 year fix) as he will be close to retirement age by then.
I've worked out that if he can fix at around 5 or 6 per cent (not sure if that's realistic) he will be paying out less on his mortgage as he is servicing his current loans.
My main worry is that obviously the mortgage will be secured on his house whereas the current loans are unsecured.
Any advice greatly appreciated.
Thanks
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Sorry, that should say:
I've worked out that if he can fix at around 5 or 6 per cent (not sure if that's realistic) he will be paying out less on his mortgage than he is paying servicing his current loans. |
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Not getting a mortgage could be a blessing in the current market. Most sensible thing to do is sell up now while prices are holding up, pay off unsecured debts, put the rest in gold/silver/oil, find somewhere nice to rent, then dip back into the property market in 2-3 years time depending how things pan out.
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