wanting to borrow more than they want to lend :(

metherer

Evening all.

Quick question for you - do you know of anyone willing to lend nearly 5x a single salary? (4.9% to be precise)

Before you shriek at the very idea, hear me out.

I currently earn £11700, working in mortgage support. I'm paying out £633 per month on my mortgage (330), loan (213) and a couple of credit cards. Thats a large sum out of my meagre wage.

If I could borrow £55000, I could repay my mortgage (45k at 6.25% with hsbc), repay my loan(8k), and also the two credit cards. I worked out that a rate of under 6% would save me approx £300 per month. I would then pay an additional £100 to the mortgage, leaving me £200 cash in hand.

So, do we know of any companies who would do this, or is there a way to sweet talk companies who wouldn't usually?

Metherer

toonfish

a few might look at it - Northern Rock and Accord off the top of my head. Perhaps RBS too.

herbiesjp

And what is the value of the property?

metherer

just over 100,000.

Metherer

tomstickland

It might save you money in the short term but in the long term you'll pay more back.

herbiesjp

You could well find some lenders happy to agree this for you. Although not an ideal situatuion in terms of money saving as you will end up paying more for the mortgage over a longer period of time, and you will be turning unsecured debt into secured debt.

HOwever, if you are struggling with your monthly affordability it may be the start to a solution - overpaying as you suggest will also decrease the extra borroiwng more quickly, thereby reducing the cost of borrowing the extra money over a longer term

HTH