Mortgage query

thomo27_2

Hi Good Evening

I am just after some advice please

I am looking into taking out a loan for about £4000 however I see that interest rates are lower if you borrow above £5-£7500K

My mortgage is fixed rate until October 2013 at 6.40%... I regret fixing the mortgage as shortly after doing so the interest rates dropped.

My monthly payment is £878

The early repayment charge on the mortgage is £4241.72


Do you think it would be wise to take out a loan for the £4000 plus the £4241.72 so lets say £8000 and look to pay of the mortgage and find a new mortgage with a lower interest rate meaning reduced payments which would subsidise some of the monthly loan payments ?

I have another 35 payments before my fixed rate expires so lets say the best deal I could get would be £778 then that would be £100 cheaper however over 35 payments I would save £3500 so It wouldnt be worth it..

Any advice would be appreciated.

My mortgage balance is £141,564 now I realise that mortgages have a lower Loan to Value than they used to i.e. 60%

somethingcorporate

It depends on the value of your house as to the mortgage rate you could move to, without this information we can only really speculate.

hcb42

looks like you did your own maths there.