Would this be a sensible thing to do?

fitzmum

Hello all,

Some further help required following on from my recent thread about whether to ditch the fix.

Our current circumstances as follows

82k mortgage
74k interest only
8k repayment

Fixed 3 years ago (for 10 years) at 5.69% with Nationwide

ERC around £2500

Mortgage ends Sept 2019 - 8.5 years left

Currently we have a projected 20k shortfall in the worst case scenario

Endowment cash in values are currently around 29k

We have a 10k outstanding home improvement loan paying £170 a month at 6.2% due to finish in about 6 years

Current monthly mortgage payment - 460
Current monthly endowment - £150
Current monthly loan - £170

Totalling - 780 a month

Would it be worth (or can anyone see any problem) with doing the following.....

Remortgage to Santander 5 yr fix at 4.49% for 65k

85k (mortgage & ERC)
+
10k Loan

minus

30k cashed in endowments

and convert all 65, 000 to repayment over 9 years which works out at a monthly payment of around £740

So we are addressing the shortfall but paying the mortgage a year longer and the loan 4? years longer.

Do the figures work? Is it the sensible thing to do? Or won't we be any better off?

Any help would be appreciated! x

getmore4less

try to work out how to do the numbers yourself.

The first thing is you need to look at
start conditions
payment in(easier to make these the same)
end conditions.

Make the monthly payment same £780 what does that look like?