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Second Mortgage Providers
wisaacs
Posts: 4 Newbie
Hi - can anyone tell me any companies that offer second mortgages i.e. an additional mortgage secured against my main residence?
The reason for my looking is this. I have a Northern Rock fixed rate mortgage that's been transferred to NR Asset Management. They no longer offer further advances/additional borrowing on their mortgages. Instead they just offer secured loans at an uncompetitive 9.79%.
I could just remortgage the entire property but it will cost me over £6000 in early redemption penalties to get out of my fixed rate deal (4.99%) which has 2 years left to run.
My property is worth around £500K and I have a mortgage balance of about £190K so plenty of equity as I want to borrow about £25K over about 18 years.
I think my options therefore are:
1) Take out a second mortgage on the property for the additional funds I want to borrow (hence the question)
2) Remortgage the entire property and try and find a deal that will negate the ERP by being significantly lower interest rate and cover arrangement fees/valuation (I think this would need to be less than 3%)
3) Face the fact I'll have to look at a secured loan but find a cheaper provider (although this really goes against the grain given that I want to use the funds to improve my property) - I guess I can look to pay off the secured loan early in 2 years when my main mortgage deal ends
I understand that NRAM were once agreeing to refund ERPs for people in my position but that they've now stopped this.
The reason for my looking is this. I have a Northern Rock fixed rate mortgage that's been transferred to NR Asset Management. They no longer offer further advances/additional borrowing on their mortgages. Instead they just offer secured loans at an uncompetitive 9.79%.
I could just remortgage the entire property but it will cost me over £6000 in early redemption penalties to get out of my fixed rate deal (4.99%) which has 2 years left to run.
My property is worth around £500K and I have a mortgage balance of about £190K so plenty of equity as I want to borrow about £25K over about 18 years.
I think my options therefore are:
1) Take out a second mortgage on the property for the additional funds I want to borrow (hence the question)
2) Remortgage the entire property and try and find a deal that will negate the ERP by being significantly lower interest rate and cover arrangement fees/valuation (I think this would need to be less than 3%)
3) Face the fact I'll have to look at a secured loan but find a cheaper provider (although this really goes against the grain given that I want to use the funds to improve my property) - I guess I can look to pay off the secured loan early in 2 years when my main mortgage deal ends
I understand that NRAM were once agreeing to refund ERPs for people in my position but that they've now stopped this.
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