1st & 2nd Mortgages to remortgage

mingles

Hi

After some debt problems which I am coming to the end of (fingers crossed) I have a 1st mortgage and a second sub prime mortgage.

The sub prime is horrendous rates of interest so I would like to remortgage and buy them out.

Orig mortgage was 32,000 with 26,000 to pay and sub prime is 30,000 with 45,000 to redeem (i know i know - its swift). Lived here 20 years and house worth roughly 110,000

Credit report is now clean and income will support remortgage although I am 52

Have I a chance of getting a remortgage to get rid of the 2nd one?

kingstreet

mingles wrote: »

Hi

After some debt problems which I am coming to the end of (fingers crossed) I have a 1st mortgage and a second sub prime mortgage.

The sub prime is horrendous rates of interest so I would like to remortgage and buy them out.

Orig mortgage was 32,000 with 26,000 to pay and sub prime is 30,000 with 45,000 to redeem (i know i know - its swift). Lived here 20 years and house worth roughly 110,000

Credit report is now clean and income will support remortgage although I am 52

Have I a chance of getting a remortgage to get rid of the 2nd one?

On the face of it, a £71k on £110k remortgage doesn't sound too difficult. However, it will depend on what's still on your credit file (you say nothing) and overall affordability.

One problem may be the term. At 52, you may be required to provide evidence of ability to service the mortgage if you want a term which extends into retirement.

A £71k mortgage at 5% over 12 years would cost around £656 per month. You might get a better rate, but we don't know what rates might do in the future, so hopefully this is more realistic. A longer term would reduce the cost, but subject to the restriction I mentioned.