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Remortgage & pay off a loan, or wait?

Yazzy_2 Posts: 2 Newbie

8 March 2006 at 4:34PM in Mortgages & endowments

Hello All,

This is my first post, so I hope it makes sense.

I bought a property for £80k six years ago. I took out a mortgage for £60k and I was given a loan of £20k (homebuy scheme).

The property has now been valued at £150k.

My current mortgage deal is due to come to an end in a few months. What I would like to ask is whether it would be wise to;

(a) remortgage and borrow more to pay off the loan (loan = 25% of the current property value i.e. £37,500)?

Or

(b) remortgage the current outstanding amount only and attempt to overpay/reduce the term of the mortgage in order to pay it off in the shortest time possible (approx 5-8 years)? This would then leave me with the option to pay off the 25% loan at a later date, or when I sell the property.

Any advice would be greatly appreciated.

Thank you!

This discussion has been closed.

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Remortgage & pay off a loan, or wait?

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