Flexable Mortgage - Is this a good deal?

Moncs_2

Spoke to a local mortgage advisor who has offered us the below as we are looking to re-mortgage. (end of current tie in period)

£93000 mortgage (House valued at £135,000)
4.89% fixed for 5 years
Mortgage is fully flexable, I can overpay as much I I want and there are no penalties for paying off lump sums and you can also take payment holidays.
He mentioned you can also borrow on the mortgage at the same rate.

Currently I have a mortgage of £73,000 and loan/visa debts of £20,000.
I am in a lucky position that I will be getting around £35,000 from the sale of my dads house in the summer.

He suggested to put all my debt into the mortgage which would work out lower payments, then when I get the lump sum from the house sale, just put it straight to the mortgage taking it down to £58,000.

Does this sound like a good deal? Its a fully flexable fixed rate mortgage that I am after.

Moncs_2

bump :xmassmile

KTF

What is the rate of the loan? Combining it with the mortgage may mean that you end up paying more interest over time (although you would have to crunch the numbers on that).

Have you considered using the cash from the sale to pay of the loan then putting the remainder into the mortgage instead?

Moncs_2

KTF wrote:

What is the rate of the loan? Combining it with the mortgage may mean that you end up paying more interest over time (although you would have to crunch the numbers on that).

Have you considered using the cash from the sale to pay of the loan then putting the remainder into the mortgage instead?

Loan payment is 6.5%, at the end of the day the loan will be paid off in the summer when the house sells lor if I consolodate a large part of the mortgage will be paid off.

Is it worthwhile consolidating all my debts into this mortgage and then pay off part of the mortgage, or just keep the individual debts and pay them off when the money comes through?

stanmoresaver

Moncs wrote:

Spoke to a local mortgage advisor who has offered us the below as we are looking to re-mortgage. (end of current tie in period)

£93000 mortgage (House valued at £135,000)
4.89% fixed for 5 years
Mortgage is fully flexable, I can overpay as much I I want and there are no penalties for paying off lump sums and you can also take payment holidays.
He mentioned you can also borrow on the mortgage at the same rate.

Currently I have a mortgage of £73,000 and loan/visa debts of £20,000.
I am in a lucky position that I will be getting around £35,000 from the sale of my dads house in the summer.

He suggested to put all my debt into the mortgage which would work out lower payments, then when I get the lump sum from the house sale, just put it straight to the mortgage taking it down to £58,000.

Does this sound like a good deal? Its a fully flexable fixed rate mortgage that I am after.

Makes sense to me, Presumably you are looking at interest only on the part that will be repaid next year and that your objective at this time is to reduce your monthly payments.

herbiesjp

You do not say what fees are attached to the scheme, but there may well be a few cheaper schemes that could suit your circumstances

Moncs_2

herbiesjp wrote:

You do not say what fees are attached to the scheme, but there may well be a few cheaper schemes that could suit your circumstances

Advisor fee is £1200 (however Northern Rock who he arranging the mortgage pays £1000 of that)

£300 valuation fee

herbiesjp

There are plenty of advisors that would do the mortgage for a fraction of that, if anything at all.

Moncs_2

herbiesjp wrote:

There are plenty of advisors that would do the mortgage for a fraction of that, if anything at all.

I thought that was a little steep.