Low Mortgage amount

eric7085

I have recently completed my Right-To-Buy application with the council.

I have received my offer price which, after the discount, is £28,140.

I have a deposit of around £10-12,000 leaving around £15,000 and would like to pay off the debt in around 5 or 6 years.

After checking various websites, I have found that most do not have mortgages for less than £25,000.

I have been with NatWest for many years and would prefer to have my mortgage with them as it would be less hassle. (Living with parents and don't have a Passport or Driving licence or any other accpetable form of identity which is why I couldn't apply for a loan from anyone else a few years back.)

Is the £25,000 limit negotiable, or am I going to have to find another lender?

I would also prefer to have a mortgage that allows overpayments.

Thank you.

Thrugelmir

Borrow the £25k then immediately make a lump sum repayment.

JethroUK

we got an offset mortgage from first direct and shifted all our savings to fd

offset any savings or current accounts against your borrowing and only pay interest on the balance - we offset 3 accounts but you can offset as many as you like - just tell em

mortgage £25000
savings £10000. + £2000 current account

= monthly interest on £13000 borrowing only

you don't get interest on any accounts used as offset but your savings will never earn as much as it being offset against mortgage/borrowing

pay as much/little as you can afford

borrow back if you get unexpected emergency (car or central heating blows up) - you don't even need to ask just shuffle your money back/forth between online accounts

provided you pay it all back by the agreed date its totally flexible how you do it

for the last few years we had more savings than mortgage/ borrowing so didn't pay a penny interest

in fact FD sent us letters reminding us we had too much savings offset

best financial move we ever made

Jimbo1976

I think NatWest will still ask for proof of ID/Address etc to satisfy the money laundering requirements. So it might not be any less hassle than anywhere else.

Had a quick look on the NWB consumer mortgage website and could not at first glance see any rates which would allow you to borrow £25k and then repay what you don't need. They do offer offset mortgages so what you don't need you just stick in a savings account and then you don't pay interest. Am not sure what the minimum loan size is. There is something which says the minimum amount for a right to buy loan is £10,000 but I am not sure if this applies to all products.

With their "normal" range you can overpay up to 10% of what you owe per year.

I think the best idea is to give NWB a call or pop into a branch and ask to see one of their advisers

Good luck

eric7085

Went to NatWest on Wednesday, got an appointment for Monday morning, but they say that their minimum for any mortgage is £25,00.

Will find out monday if this is negotiable.

What would pass for ID? I have everything else(bank statements, pay slips, NI number, credit card statements? but on my appointment paper it says I need proof of ID, the only examples they give are Driving Licence or Passport, neither of which I have).

eldaniel

JethroUK gave you great advice. First Direct flexible offset mortgages are hard to beat these days. You can use them as an open credit line and pay in and out whenever you like.
My best financial decision too Jethro

JethroUK

eric7085 wrote: »

Went to NatWest on Wednesday, got an appointment for Monday morning, but they say that their minimum for any mortgage is £25,00.

Will find out monday if this is negotiable.

What would pass for ID? I have everything else(bank statements, pay slips, NI number, credit card statements? but on my appointment paper it says I need proof of ID, the only examples they give are Driving Licence or Passport, neither of which I have).

Any official paperwork with your Name & Address on it would count as ID - could include:

Utility Bill
Bank Statement
Insurance Policy
Some cheque books also show your address

kingstreet

Why not simply use a lender with a lower minimum loan?

Lenders have long lists of identity and address options you can choose from. For example, you may be able to use a tax code notification, medical card, NI card, and birth certificate, together with evidence of address, such as a bank statement.

dimbo61

Many lenders not only have a minimum loan say £25,000 but also a minimum term of say five years.
I also LOVE offset mortgages for the flexibility they offer and think this would suit your needs.
Low or no fee deals will save you money as you are only borrowing a small amount over a short period of time so the interest rate is NOT that important