Advice needed please!!!

MissusF_3

Hi! I'm currently on a mortgage-free journey, and want to do the One account when i end my current fixed term, Feb 09. We have had the valuation, very disappointed, but not surprised in current climate. Herein lies the problem:

Valuation = £100K
Mortgage needed = £99,960 (this clears an advanced borrowing from nearly two years ago)
Mortgage offered = £90K
we have no other loans, credit cards or debts

My thoughts are to take the One account at £90K and finance another unsecured loan for the remaining £10K, and then when market picks up and value of house rises, extend the ONe account to cover the unsecured loan. We can afford overpayments on the One account which would make us MF in 6 years.

Does anyone have any advice??? Does this sound like a car-crash waiting to happen???

Thankyou so much for taking the time to read this, we are pulling our hair out thinking of the right thing to do!!!

Cheers

herbiesjp

Why the One Account in particular?

Other lenders allow overpayments etc, whilst offering lower interest rates, and it could have the same effect

getmore4less

The one account is usualy one of the more expensive options for offsetting have a looka round for the other options.

Are you sure you have the numbers correct, £100k@6.7% over 6 years is nearly £1700pm.

If you can afford this then you could borrow the £90k and just pay the interest(£558pm)

Then get a loan for rest over a short period(<1year) or even a 0%CC might do it.

No need to be extending the mortgage at a later date if the plan is to pay it off.

MissusF_3

hi guys, thankyou for responding!
the one account was very attractive to us for the overpayments, ease, and neatness of it. we've been trial-running a budget over the past 2 months and we can afford overpayments of £800 per month, totalling 1550.

we still dont know what to do, but i think i need to sit down with a bit more time and research - i'm very slow when it comes to maths!!!!!

i think researching lower interest rates and overpaying on that could be a good alternative.

keep the advice comin' guys, all so gratefully received!!!