Bet You Have Heard This Before

stroppiemare

I apologise if you have had this before,we are with northern rock on a repayment mortgage and i have recieved our statement this morning.We were tied with them for 4 year's which i think is up sometime this year,i was wondering what is the quickest way to pay the mortgage off.

owes...23,754
pay...235.00

we can afford to pay more a month,but i have no idea where to begin do we stay with n/r or remortgage and with who? any help would be very much appreciated.

roswell

Its propbably going to be hard to get a mortgage for £23 000 not impossible but hard many lenders would noty make enough on it for it to be worth there while, (sounds odd yes) see what the rate is that northern rock offer you at the end of the 4 years or mortgage for a higher amount with full felixability eg over payments and withdrawls with out penelties this way you could mortgage for £50 000 on say monday and pay back £25 000 on tuesday then start overpaying by what ever amount you have free each month.

stroppiemare

So i wouldn't be wise going to n/r and saying look i'm 48 and i want a way of paying this mortgage off by the time i'm 55,would they think i was mad.

roswell

no not mad but i dont think they will offer you a lower interest rate they will probably offer to reduce the term of the mortgage and give you a new monthly amount that you would need to pay.

FairyElephant_2

Hiya,

I'm with Northern Rock too....

When our last fixed reate with them came to an end I shopped around as ususal (how I ended up with them in the first place), then went back to them and said "XXXXX company is offering me this - what will you offer me to stay?". I wanted another fixed rate, and to shorten the term of the mortgage, so these were the quotes I got from other companies.

NR were extemely helpful I have to say, and gave me several options of fixed rates for different terms, and waived the setup fees for these as I was an existing customer, so as to keep my business.

Always worth a go I think, even if you are not looking to borrow a huge amount.

Good luck,

FE.

DavidHM

You're just within the level for a personal loan, if your income is high enough and your credit rating good enough, to justify it. The problem with such a small mortgage is that it still needs to get the lawyers involved, being drafted as a deed, etc., and there may be arrangement fees - no problem on £200k, a pain on £20k. £23k over 7 years is £340 on a personal loan.

Otherwise see if you can reduce the term of the mortgage and only then compare remortgaging because my feeling is that shopping around might cost you more in fees than you'd save.