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Advise Please

rebon
Posts: 19 Forumite

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
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
0
Comments
-
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?0 -
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.0
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