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Remortgage & borrowback?
jacklia
Posts: 62 Forumite
Hi, I'm looking for some advice?
We have a 2-year flexible fixed-rate mortgage with Northern Rock which ends on 1 November this year. The interest rate is 5.5% (6.8% APR).
This is an Interest Only mortgage and we pay £160.96 interest per month plus a regular monthly overpayment of £160 which means our mortgage should be cleared in 11 years come November.
The balance in November will be £30,000 and our house was last valued in 2002 at £65,000.
We have a "borrowback" amount available of £8000 and are thinking about borrowing about £5000 of this for home improvements.
Could someone help us to work out how much this would cost us per month, if we carry on with a similar mortgage, with a view to still being able to pay it off in about 11 years time?
Or is there another way that we should be doing this?
Any advice would be appreciated please!
Jackie
We have a 2-year flexible fixed-rate mortgage with Northern Rock which ends on 1 November this year. The interest rate is 5.5% (6.8% APR).
This is an Interest Only mortgage and we pay £160.96 interest per month plus a regular monthly overpayment of £160 which means our mortgage should be cleared in 11 years come November.
The balance in November will be £30,000 and our house was last valued in 2002 at £65,000.
We have a "borrowback" amount available of £8000 and are thinking about borrowing about £5000 of this for home improvements.
Could someone help us to work out how much this would cost us per month, if we carry on with a similar mortgage, with a view to still being able to pay it off in about 11 years time?
Or is there another way that we should be doing this?
Any advice would be appreciated please!
Jackie
0
Comments
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jacklia wrote:Or is there another way that we should be doing this?
Jackie
I would suggest you consult a WoM broker- they will almost certainly reccommend you take the money on an interest only basis and then remortgage- based on your preferences to take effect from november.
They would certainly be able to tell you what the likely monthly costs and required overpayment would be so that you could decide if it is the right thing for you to do
Hope this helps
SSI am a fee charging WoM Mortgage broker.I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:0 -
Northern Rock service centre can calculate the exact cost for you - 0191 279 4828 option 2Number 86 - Stole a car from a one legged woman... I'm just trying to be a better person0
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