Minimum Mortgage amount

dizzylizzy123

We are looking at downgrading our property and will only need a
10,000 or maximum 15,000 mortgage. I cannot find a Bank that will lend this amount, some are asking for a minimum amount of £40 or £25,000. Secured and personal loans are a very expensive and inflexible way for us to borrow any suggestions, we hoped to may over the minimum amount and clear the debt in 12/18 months.

Jimbo1976

Is your income enough to borrow £25,000 to £40,000 to satisfy the minimum requirements? if so then either choose a deal with no early repayment charges and once the deal completes pay off the bit you don't need or take out an offset deal and put all the surplus in a offset account so you are not paying interest.

kingstreet

You'll find some lenders won't lend because they have a hang-up with the amount being below the CCA maximum level of £25k. In addition, they don't offer special rates at lower amounts because they don't make enough profit.

Smaller building societies are probably more likely to have the lower minimum loan you need. For example, my local society, Stafford Railway, has a minimum of only £5,000. This isn't a recommendation and they only lend in a narrow postcode range anyway.

In total, Mortgage Brain shows 22 lenders willing to lend at such a low level. There will be geographical restrictions in some cases, so take care when looking.

dizzylizzy123

Jimbo1976 wrote: »

Is your income enough to borrow £25,000 to £40,000 to satisfy the minimum requirements? if so then either choose a deal with no early repayment charges and once the deal completes pay off the bit you don't need or take out an offset deal and put all the surplus in a offset account so you are not paying interest.

Thank you i think that is an option we hadn't thought about - actually paying off the surplus as soon as the deal is complete and then continue with overpaying on the monthly payments.

dizzylizzy123

kingstreet wrote: »

You'll find some lenders won't lend because they have a hang-up with the amount being below the CCA maximum level of £25k. In addition, they don't offer special rates at lower amounts because they don't make enough profit.

Smaller building societies are probably more likely to have the lower minimum loan you need. For example, my local society, Stafford Railway, has a minimum of only £5,000. This isn't a recommendation and they only lend in a narrow postcode range anyway.

In total, Mortgage Brain shows 22 lenders willing to lend at such a low level. There will be geographical restrictions in some cases, so take care when looking.

Thank you we are close to Stafford in fact ( 20 miles down the road), and that web site may be useful.

kingstreet

What website?

You have an ST51 - ST21 postcode? That's the SRBS area.

If so, my naming of Stafford Railway BS was in no way to be considered a recommendation or endorsement of the lender's products or services. It was used only as an example of a lender providing lower mortgage amounts in a restricted geographical area.

Jimbo1976

Kingstreet, i think it is perfectly clear from your first post that you were NOT giving advice, you were just using SRBS as an example of a lender with a low minimum mortgage amount and you even said that this "isn't a recommendation"

kingstreet

I know. I didn't imagine for one minute that the OP would live anywhere near the one local society example I chose to use. I'll learn!