clever way to get out of 10 year deal?

sinbad_18

Hi all, I have been wondering for some time now if I'm paying more interest than i need to.
I signed up to 10 years fixed rate at 5.15% (just before the base rate dropped). As this is an offset mortgauge, does anyone know off any way to borrow cash at a lower rate?
long shot i know but would be grateful of any ideas

Anonmouse

Stoozing (see the credit card sub forum) - borrow money on credit cards interest free and offset as much as you can borrow.

Thrugelmir

What's the purpose of releasing the cash?

sinbad_18

thanks both, am currently stoozing, but just to the tune of a couple of grand which leaves 80,000 to pay interest on. was actually wondering if there was any way of getting another mortgauge type loan (at less than 5.15%) and putting that in my off set account to save, but i guess i would be borrowing against the same property twice.

silvercar

sinbad_18 wrote: »

thanks both, am currently stoozing, but just to the tune of a couple of grand which leaves 80,000 to pay interest on. was actually wondering if there was any way of getting another mortgauge type loan (at less than 5.15%) and putting that in my off set account to save, but i guess i would be borrowing against the same property twice.

No reason you couldn't get a secured loan. Though whether the interest rate and charges make it worthwhile I doubt.

property.advert

What you want is an effective arbitrage: you borrow money more cheaply than the interest you receive for depositing it.

Unless you have substantial equity in the property, way over the amount of the combined loans, I don't see a way. Even then, no-one is going to lend you money cheap enough on a 7 year (guessing at term) fixed rate either as a second mortgage.

dimbo61

Simple really put say £500/£1000 extra into the offset every month and save yourself 5.15% TAX FREE thats what we have been doing for the last 6 years