Can I do this?

rob_kzk

Hi All,

I'm in the process of taking out another mortgage to buy a house together with my girlfriend whilst we try to find another buyer for my flat (the buyer that we had pulled out just before exchange).

However, I need to get some money to top up the mortgage in the short term (hopefully only a couple of months). We roughly need £14K and after reading Martins loans article I've been looking at the Northern Rock website. My question is, would it be possible to borrow the £14K over say 120 months and then once the flat has sold and we have the money to pay it off (as there are no redemption penalties etc.) pay it all back in one lump sum? The reason we want to do this is to keep the monthly payments down to the bare minimum in this time where money is going to be tight enough anyway.

If this is possible or not, or people have got other suggestions please let me know.

Thank you very much for your help.

Rob

EagerLearner

Hi Rob - I would say it probably comes down to each lender as to what they will allow - early repayment means the loan company won't make as much money as they thought they would so are bound to want a piece of you. You could place some enquiry calls out to say 3 lenders and ask them if that would be possible - after all, if you're just enquiring there's no harm. You will also find out lots via the financial experts here at MSE but call some companies too and ask.

Let us know how you get on and good luck finding a buyer to help you move up the ladder ;o)

EagerLearner

homer_j_3

I am not really an expert on unsecured but I have heard of some companies that will put warnings on your credit file if you are seen to be an unprofitable customer. I.E repaying it within a very short term.

Not saying it wil hapen but maybe someone can shed light on whether this will happen or not..

EagerLearner

Homer J - I'd be interested too if that's the case, as I'm a well-behaved credit card owner who always pays it off even it takes 2-3 months, and now have been refused a card by Morgan Stanley. I'd like to know if there's such a thing as being too good with your credit card and whether that puts other lenders off - is there a 'beware this is a good payer' list for lenders???

Agh, the world is a weird place for people who are careful with money!

EagerLearner

rob_kzk

Has anyone got an answer to this?

I think it's something that I need to know pretty quickly!

Thanks

Rob