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Mortgage & Loan?
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squiffyjack
Posts: 12 Forumite
I am trying to keep the house after breaking up with my boyfriend, we currently have a £97,350 mortgage with Northern Rock, I have just got an offset mortgage in principe with first direct for £150,000 - the extra is to pay my partner his equity. I have just got the papers from first direct and it shows £97,350 required for mortgage, and £52,650 as an offset loan (same term & rate). Can anybody explain why it has been split like this, and will other lenders do the same?
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Can I ask the value of your property ?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
It will be valued about £270,0000
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Most lenders would have it down as one lump sum - normally there is a split like this if the lender is agreeing a facility i.e you initially want to re-mortgage for the £97k with the ability of drawing the down the balance (up to the £150k) as and when you need to.
However I am guessing that you would need to draw down the funds straight away to re-mortgage and pay back your boyfriend.
Do you have savings somehwere? Will you be using the offset facility - otherwise it may be an expensive option, as offsets tend to have higher rates.
Have you looked at other deals?
HTHI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I don't have much savings, but i am hoping to put as much away each month as i can, and overpay - don't like any debt! haven't looked anywhere else as i bank with them and wanted 5x mortgage thought they would be best as they have access to all my in and outgoings. I would be using the funds straight away, but for some reason i have a problem with the extra being a loan rather than part of the mortgage!0
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It does seem strange that they want to do it this way, I would contact a whole of market fees free broker and see what they can offer. The high income multiples are quite standard these days and you may get offered a better deal elsewhere.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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