Part remortgage

serge1

Hello

I currently have a mortgage with the Yorkshire BS which is made of 2 products as follow

£158,000 @ 4.7% fixed that ends in Dec 10 then reverts to BOE base rate + .75%
£116,000 @ 5.6% fixed that ends April 12 (redemption fee 4%)

I want to keep the first product for obvious reasons
I want to re mortgage against the second product only and raise an additional £50,000 to pay of unsecured debt

Please advise if this is possible?

The value of the property is approx £550,000

We have a joint income of approx £70,000

Thanks

serge

JimmyTheWig

Generally moving unsecured debt to secured debt is considered a bad thing.
Are you sure that you want to do this?

GMS

You would need to speak to Yorkshire BS as you cannot remortgage to another lender and leave the first product with YBS.

Consider a remortgage of the lot. You are obviously happy to pay the Early Repayment Charge on the second product. Whilst the BBR + 0.75 looks attractive now the rates are likely to go up after which time you would maybe want to remortgage again for a fixed rate. Once rates start to rise it is likley that fixed rates will go up too. A 'middle ground' rate may be beneficial.

Look at the figures overall. If you could fix for a decent rate you may prefer the security of knowing payments.

£50,000 to repay unsecured may exclude some lenders though as they do not like debt consolidation at that level.

Best thing to do is speak to a 'Whole of Market' broker and see what your options are.