Re-mortgage advice needed

Phoenix10

We currently have two interest only mortgages, both fixed rate, one at 7% and one at 5%, totalling c.£190,000. Our house is valued at c.£250,000 and we'd like to remortgage (a) to find the lowest rate possible and (b) to free up c.£20,000 of the equity so taking the total mortgage to £210,000.

In approx. 10 years time we are selling the house and will pay off the mortgage in full at that point as we will have another property available to us at that point.

So, We are not at all interested in anything other than an interest only deal and we will only be paying off the mortgage from the property sale in c.10 years time.

Our combined incomes are around £30k, my wife is employed and I am self-employed.

Would be grateful for advice as to how best to achieve this.

CloudCuckooLand

7 x joint income is so 2007...

Not going to happen.

MarkyMarkD

If your existing mortgages are fixed rate, you are almost definitely liable for ERCs to exit early.

Before even considering that, you should be telling us when the fixed rates (and ERCs) expire, and what percentage ERC is payable.

Borrowing 84% of value (or probably even more if the value obtained is not what you think) is going to be at the top end of rates available. And nobody will lend anything like the income multiples you need.

Have your incomes fallen dramatically, or were you borrowing from some very dodgy lenders (Northern Rock maybe?)?

Why do you want/need the £20k? If it's for debt consolidation, most lenders won't like it. And if it's to invest in the business, most lenders won't like it.

All in all, your plans do not look realistic. I think you should be attempting to clear the debt - if the ERCs allow - or just forgetting about doing anything for the next few years.

Incidentally, what is the rate after the fixes end? The rate(s) may be so good that you would be very foolish to remortgage and lose it.