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Remortgage Advice....

Hi,

I was hoping for some advice.

I am looking to remortgage/borrow 105k – 85k to cover existing mortgage and 20k to sort out the credit cards and essential repairs to the house.

I currently have one consolidation loan which will end in just over 3 years time.

I have looked into it and have decided that I think the best way for me to do this and know what my outgoings will be each month is to go for a fixed term. I am leaning towards a 10 year one due to the rises in the base rate etc and I can get one for about 5.64% - which I think is good?

My idea is to increase the mortgage term to 25 years from 20 to lower the payments and overpay when I can. I can overpay by 20% each month on the new mortgage.

When the consolidation loan is paid I am still going to put that money to one side and put it into an ISA. Then when the 10 year term is up I can use the money in the ISA to pay off a lump sum and remortgage the rest over a 5 year term therefore being debt free in 15 years, if not sooner.

Is this possible or have I got it really wrong in my head?

Thanks in advance
Amanda
Comping Newbie! 2011 Wins so far: £10 Sports Direct Voucher, 2 Footballs, Gillette Razor, Ravin Rabbids Wii Game, England cricket bag, Gossip Girl 1-3 Box Set, £5 Fru voucher, Tron PS3 Game & Circus of Horrors Tickets. :D

Eleventh Heaven # 1977 : 1 2 3 4 5 6 7 8 9 10 11

Comments

  • KTF
    KTF Posts: 4,822 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Have you done the research yourself or taken advice from an advisor? If you havent seen an advisor then it would be worthwhile doing so.
  • MsA_2
    MsA_2 Posts: 69 Forumite
    Hi KTF, Thank you for your reply. I have done the research myself but I think your right I will get in contact with one.

    Do advisors charge? Sorry if it's a silly question....Never had to use one before.
    Comping Newbie! 2011 Wins so far: £10 Sports Direct Voucher, 2 Footballs, Gillette Razor, Ravin Rabbids Wii Game, England cricket bag, Gossip Girl 1-3 Box Set, £5 Fru voucher, Tron PS3 Game & Circus of Horrors Tickets. :D

    Eleventh Heaven # 1977 : 1 2 3 4 5 6 7 8 9 10 11
  • KTF
    KTF Posts: 4,822 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The majority of them charge no fee and if you find one that does then look elsewhere are there are plenty of them about. Make sure they are whole of market as well.
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