Borrowing strategy

tybalt999

Hi all,

First post, be nice.

My fixed rate is coming to an end and I'm not sure how to proceed. These are the facts

Outstanding mortgage £132k
House value (conservatively) £140k
Savings £Not that much
Other borrowings £0

So my main issue is LTV.

When I took out the mortgage 2 years ago our joint income was £30k. Thanks to my recent pay rise it's now £58k. At this level, lenders seem happy to lend £200k+ as we have no kids or commitments.

With my LTV as it stands I'm getting quotes of 6.8%+ which isn't ideal.

Therefore, would it be worth my while taking out a personal loan of circa £15k at say 7% to get my LTV down to 80% and be able to access better deals? Even with unsecured borrowings at that level, lenders still seem happy to lend the amount I need (£132k).

Has anyone done something similar?

Thanks for any help,

Matt

loopholer

i'm about to renew my mortage too, my LTV is 48% and the best deals available are 6.09-6.6% but the high arrangement fees make the AER more like 6.6-7.0%. There's a mortgage guide on here too, but really it's best just to shop around and do the sums. Take the total borrowing costs over 2-years, remember to include exits fees from existing lender, arrangement fee, valuation fee, chaps fee and any broker fees. The total/132K will give you the appriximate AER. The unsecured loan idea may save you a few pounds, but it will probably not be much.