Secured loan - mortgage?

MrsPorridge

Just wondered if anyone could give me some advice. please. I went into Santander today and the girls behind the counter were doing hard sells on everything from life insurance to mortgages! I have ended up making an appointment to see a mortgage adviser next week for an offer of a 5 year fixed term mortgage at 2.99%.

At the moment I have two mortgages with HSBC totalling £32,000 approx - both finish in 5 years and 4 months. They are on a variable rate and at the moment I am paying 1.5%.

I have a secured loan with Nemo of just under £20,000 - due to finish in 5 years time. The rate on this one is a 7.8%. At the end of this loan - if I don't overpay and go into arrears I will get what they call a quarterback payment which will amount to just under £3,500.

I will take a chance with the mortgage rate and keep the HSBC ones. However, would Santander be able to cover the secured loan? Is it like a mortgage?

If so then my question is this: would it be better to take the just under £20,000 Nemo loan and move to Santander for the fixed rate of 2.99% over 5 years (this would mean I would not get the quarterback payment). I guess I am asking - would it be of more benefit to stick with Nemo and get the quarterback payment or better to move to the lower fixed rate with Santander? I am useless with working out the sums.

Of course it may be that Santander will not touch me and won't entertain taking the Nemo loan anyway

Thanks for any advice.

Tixy

The santander figures / rates would be for a mortgage that has the first charged on your property. Its unlikely they would offer the same deal and rates if they only have second charge on your property (as HSBC will retain first charge).