remortgage help/advice

poocreek

Hello folks,

Just thought to ask for some advice, too see if this is a good or bad idea!

Looking to remortgage & consolidate my debt too as I'm getting a little stretched.

I have a mortgage with Nationwide for £44000 (£260 p/month) and I am half way through a 5 year fixed agreement. My monthly debt repayments are £230 per month for my loan and two credit cards.

I have a deal offered to me, set up by London & Country brokers, with the Halifax. I would be paying £745 to transfer over to them, BUT I will have to pay Nationwide some £2100 in exit fee's.

The new mortgage would be for £53000 4.5% (£316 p/month) over 22 yrs (same as whats left on the Nationwide mortgage)

I know this all sounds crazy, but I will save myself £180 per month. If I do go ahead with this I will be making every effort to over pay the new mortgage as and when I can.

I appreciated to some folk, these figures may be tiny. Not to me!!

Any advice on the above would be very gratefully received.
Thanks in advance.

herbiesjp

Have you asked Nationwide if you can borrow the extra money to clear the debts?

Paying £2100 on a low balance like this, plus the £745 seems like a bad idea.

BoGoF

Are there any more fees that would be incurred, solicitors fees etc. As things stand it will cost you £2845 to save £180 per month so it will take over 15 months to recoup that outlay.

Does the ERC of £2100 reduce any as the mortgage nears the end of the fix?

Do you trust yourself to bin the credit cards after clearing them?

poocreek

BoGoF wrote: »

Are there any more fees that would be incurred, solicitors fees etc. As things stand it will cost you £2845 to save £180 per month so it will take over 15 months to recoup that outlay.

Does the ERC of £2100 reduce any as the mortgage nears the end of the fix?

Do you trust yourself to bin the credit cards after clearing them?

Thanks for the reply!
I am not too sure about the ERC reducing, would have to contact the Nationwide and find out.
I figured that it would take that long to recoup the outlay and with regards to binning the cards....can't promise not to use them! Planning on taking some professional driving lesson's to obtain either a bus or HGV license this year. The money I would save would help to pay for that.

The thought of just paying £316 for everything - mortgage & debt as apposed to £492 is tempting, But future me might not thank me!

BoGoF

Future you wouldn't thank you if you went out and spent on the credit cards.....you would then be paying more than you are now.

As tempting as it seems, consolidation only works for the very disciplined.....I read on another thread only 15% of consolidations 'work'