Paying off mortgage

webster29

Hi i have a straight repayment mortgage 9 years left £20.000 to pay :T i noticed that i can take a loan for the existing amount left still paying it off in 9 years time and saving myself £50 a month, has anybody else done this or has anybody any thoughts thanks :beer:

jamesd

What are the interest rates for the mortgage and the loan?

webster29

Hi the mortgage is 6.75 and the loan is 5.7

roswell

you need to see if there is a penalty fee / exit fees for the mortgage, although if your gettign that rate on a loan you should be able to get some good mortgage deals but as the amount is 20 000 you will probably have to get a flexi mortgage for say £50 000 and once its in place pay back the £30 000 as there arent many lenders that give mortgages for £20 000

webster29

Hi no there isn't any penalty fees just a final closure on the mortgage thanks for all the advice

jamesd

You should be able to get a flexible fees-free life of mortgage tracker mortgage for between 5.25% and 5.5% that is cheaper than the loan. Check the with-fees option as well, since it may be cheaper. Mortgages can be obtained down to 10,000 so you shouldn't have any great trouble arranging this.

Alternatively you should be able to get a fixed rate deal for between 5 and 5.25%.

Life of mortgage tracker is so you don't ever go to SVR interest rates again.