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Remortgaging

edited 30 November -1 at 1:00AM in Mortgages & Endowments
1 reply 1.7K views
alantayloralantaylor Forumite
10 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi all,

I'm looking for some advise really.

My wife is starting university mid September and I want to change my mortgage and see what I can do with a loan I have.

I have no redemption penalties to pay and my mortgage is with the Halifax and interest is worked out yearly. I took out this mortgage in 2001 for 25 years.

The variable base rate on it is 6.750% and the tracker rate is 5.750% There is around £70k outstanding on the mortgage and my monthly payments are £491.22

My house is now worth around £150k

I also have a loan with the barclays with an interest rate of 12.9% apr There is about £3k left to pay on this.

I understand that I can reduce my mortgage payments a lot, but what I want to do ideally, is add an extra 3k to my mortgage so I can pay off the barclays loan. How easy is this to do? And what do you tell the mortgage provider? Do you say its for home improvements? If so do you have to prove you've had home improvements done?

Also I started a new job at the start of July and am still in my probationary period. And will be until the start of October. Will this cause a problem or is it better to wait until my probationary period has finished?

Thanks for your help in advance.

Alan

Learn from the mistakes of others - you won't live long enough to make them all yourself.

Replies

  • lisyloolisyloo Forumite
    26.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    How easy is this to do?

    Fairly easy, you'll just have to fill in some forms.
    And what do you tell the mortgage provider?

    What about the truth?
    There is nothing wrong with paying off loans.
    The lender won't be bothered providing you have the income and equity to cover it.
    The variable base rate on it is 6.750% and the tracker rate is 5.750%

    You could get a better rate than that.
    What about remortgaging to a different lender (for £3K more than the current amount).

    What about a Nationwode tracker at 4.79%?

    http://www.nationwide.co.uk/mortgage/interest_rates/default.asp

    I haven't done a search, but I'm sure you can get better rates than what you are paying right now.
    Will this cause a problem or is it better to wait until my probationary period has finished?

    Not sure, but my guess is that it could be a problem.
    Could you wait another month?
    Doesn't sound like there is a rush.

    Note that remortgaging to a new lender usually takes 6-8 weeks and you should also check out whether there are any penalties for paying off your loan.
    If there are high penalties then it might not be actually worth paying it off so you should check that out first.
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