remortgage

apolotares

im sorry im not with you i have property with no mortgages - they are let out. nut i own them outright. the northern rock is not seeking repayment. Iam trying within the terms of arrangement i have - and i was careful to ensure that i could pay off the mortgage, they said i couldnt but i could make a repayment and leave 1 pound in and avoid their early repayment penalty. So this is what i want to do but they wont let me borrow from another lender to do so

hcb42

quite right they wont let you borrow, that would be same as remortgaging, so you can but with the ERC normally. Otherwise it would make a nonsense of getting a "deal" with an ERC and then evading it because a better deal comes along. you win some, you lose some. You took the risk when you needed the first mortgage.

However this is a confusing thread, and the fact you now say you have no mortgage has confused me.

I dont think your mortgage company has anything untoward in its terms here though.

Thrugelmir

apolotares wrote: »

they said i couldnt but i could make a repayment and leave 1 pound in and avoid their early repayment penalty. So this is what i want to do but they wont let me borrow from another lender to do so

Makes commercial sense to me why the NR is playing hardball.

As what you are doing is of no benefit to them at all.

So liquidating other investments to reduce the mortgage balance seems the way forward to save money.

apolotares

forgive me im confusing you - the house i live in is mortgaged - i have 4 others that are not. i am not attempting to walk away from the deal i have and therms are good, 5.19 pct is still a good deal over the 10 year period since 2006 - interest rates are unlikely to stay where they are.

The point im making is i could repay a lumpsum of 299,999 and leave 1 pound and not pay an early repayment penalty. So i coud mortgage another property and do that. id rather not. But i have 580k of equity in my house. what i planned to do was borrow another 300k on my house repay the 299,999 off the original mortgage and pay a new rate of 3.95 and save 12,000 over the 5 years. So if im correct even though it is not in the contract that i cannot do this i cant all the same. but i can if i raise the money elsewhere on other assets.