£15k mortgage?????

smickster

Hi,

looking for advice on where\who to find £15k mortgage on a £175k property.
My problems is im looking for this finance but all mortgages i see have £1500 booking fees.
Im looking to borrow this then 1-2 remortgage and fix for 5-10 so parting with this fee seems a little harsh.

smickster

offers range from 3.69 with booking fee of £1333 or could go 5.49 with fee of £220 which looks more appealing as only planning to be on for 2 years.
Any advice on the cheapest way to aquire funds appreciated.

puddy

i often wonder this as when my fixed rate eventually ends, the mortgage will be very small but i would either need to settle for the variable rate for another 3 years or try to remortgage. i have seen places that say that they wont accept a mortage of less than 10k, so how do you remortgage if you have very little left to pay but still want a good rate?

i know thats not exactly what you asked but the proportion of fees and costs etc are way out on very small mortgages

smickster

my situation is slightly different.my parents have a mortgage cheque book on for there property at a rate of 1% above bank rate (no collar) the max is £150k which they have kindly allowed me to use to purchase property.
The property i wish to purchase is £165k and feel a little reluctant to pay £1333 of fees which will almost equate to 9 months interest on the £150k loan...!

smickster

Especially as they expect me to remortgage within 2 years in which time i should have deposit of 10% or more

poppysarah

15k mortgage? unsecured loan?

m_13

I don't think you are going to find a £15k mortgage anywhere.

As poppysarah says, an unsecured loan is probably your best option but make sure you can pay it off early if you take it out over a longer than 2 year period.

Martin's loan article is here: http://www.moneysavingexpert.com/loans/cheap-personal-loans

£15k at 8% for two years:

To borrow £15000, it will cost £678/month

Over the life of the loan, this costs £1,281 in interest

The interest is less than the booking fees you have quoted!

If you don't want to go with a highstreet lender then you could always lend from Zopa. However, if you are a young lender (20-25) then their rates are high. Their minimum loan period is 36 months but they are totally flexible and have no fees for early repayment.

Why don't you borrow £25k on the mortgage and less from your parents? Using the FSA Mortgage Tables you can see details of all the fees. However, don't be blinded by fee-free. Sometimes it's best to pay a fee to get a rate that saves more than the fee in interest.

poppysarah

smickster wrote: »

Especially as they expect me to remortgage within 2 years in which time i should have deposit of 10% or more

And what if you don't. And what if you can't remortgage?

Serisouly you need to discuss this with them - it might happen that you don't have a job (it's a recession you know), or your income has dropped because you've suddenly had 20 kids, or you have been sick or anyone of a million reasons why you might not be able to remortgage.

Are you putting their home on the line?