Advise Please

rebon

Hello.

Could some one in the no advise me for the best way to do this?
Basically I need to re-mortgage or borrow 7 thousand pounds to build a conservatory.

I have shopped all around and looked for advice from advisors and it seems the lowest payment for a re-mortgage is about 300 pounds per month for the 6 years remaining on my mortgage.

I have a 21800.00 pounds mortgage over 6years left. Unfortunately 14000.00 pounds of that is an endowment  the remaining 7800.00 is repayment.

When shopping around I looked at just getting a loan for the remaining repayment part of the mortgage plus an additional 7000.00 for the money I need.

So I thought well if I take a 14800.00 pounds loan over 6 years I could just pay off the repayment part of the mortgage then in 6 years finish the mortgage off when the endowment matures plus any shortfall .

My question is what are the pitfalls doing this? Can it be done, will the building society allow this. I will save about 45.00 pounds per month if it can be done.

Hope this makes sense.

Thx…rob

Ian_W

Hi rebon & welcome,
Not sure I quite understand what you mean, but if I'm reading it correctly - what happens to the IO only part of the mortgage - you still have to pay interest on it as you owe it to the lender.
Only way I can see it works is if you remortgage for £28,800 with £14,800 on a repayment basis and £14,000 interest only? That then gives you the £7K you want for you conservatory. Or am I missing something?

rebon

I see, bit confused myself lol, I was hopeing the new loan could pay off the repayment part of the mortgage and the building society gets the 14k endowment in 6 years.
Dont think they would allow this but thought I would ask here, the new loan would be with the same Building society.


thanks for the reply.