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Re Mortgage and Second Charges
Magic_Dragon
Posts: 277 Forumite
Hi Everyone
We have finally got round to remortgaging our home and were 1 click away from completing our application with HSBC for thier fee free life tracker currently 5.99%.
However, we have a second charge on the property. DH is in the forces and took out an LSAP loan of £5000 (interest free) to help us with the initial purchase. We pay it back direct to them out of his wages and it will be paid off by the time he leaves in 5 years.
HSBC wont accept it though. We would have to take out an addition secured loan via them for the balance (approx £4000) which of course wont be interest free any more. She said we cant just put it on the mortgage either (even though it would still be within max LTV)
Now I am not sure what is going to be the most cost effective plan of action.
1.Stay with our current provider Halifax on the SVR of 7% (our fixed rate has ended) and hope they will provide a decent deal sooner or later (I have alerady asked!)
2. Look for another supplier that will accept a second charge (I cant find another fee free one anywhere near that rate!)
3 Switch everything to HSBC and have a mortgage AND a secured personal loan. (which she failed to mention the interest rate on!)
4. Our other option is to pay off the second charge. We do have the money. However it is sidelined to pay off our credit cards (which are all interest free until November and the £8000 is in an ISA until then) So if we use the money to pay the loan we will have to pay interest on the credit cards.
We are not struggling for money and can afford to stay as we are - but obiously we dont want to throw money down the drain!
Any ideas?
We have finally got round to remortgaging our home and were 1 click away from completing our application with HSBC for thier fee free life tracker currently 5.99%.
However, we have a second charge on the property. DH is in the forces and took out an LSAP loan of £5000 (interest free) to help us with the initial purchase. We pay it back direct to them out of his wages and it will be paid off by the time he leaves in 5 years.
HSBC wont accept it though. We would have to take out an addition secured loan via them for the balance (approx £4000) which of course wont be interest free any more. She said we cant just put it on the mortgage either (even though it would still be within max LTV)
Now I am not sure what is going to be the most cost effective plan of action.
1.Stay with our current provider Halifax on the SVR of 7% (our fixed rate has ended) and hope they will provide a decent deal sooner or later (I have alerady asked!)
2. Look for another supplier that will accept a second charge (I cant find another fee free one anywhere near that rate!)
3 Switch everything to HSBC and have a mortgage AND a secured personal loan. (which she failed to mention the interest rate on!)
4. Our other option is to pay off the second charge. We do have the money. However it is sidelined to pay off our credit cards (which are all interest free until November and the £8000 is in an ISA until then) So if we use the money to pay the loan we will have to pay interest on the credit cards.
We are not struggling for money and can afford to stay as we are - but obiously we dont want to throw money down the drain!
Any ideas?
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