Help!!! My Aim - Lump Sum repayment and reduce monthly repayment

cab96

Any help on my situation will be greatly appreciated

Mortgage account total outstanding £85,000 total monthly repayment £1200 split 3 ways as follows

1 - 60K approx 7.5% 10.2 years remaining = £706.28 per month

2 - 6300K approx 6.39% 4.2 years remaining = £71.77 per month

3 - 19K approx 7.5% 10.2 years remaing = £421.62 per month


Dilemma

1 - Want to reduce monthly repayment as believe paying way too much

2 - Want to repay lump sum of £10,000

3 - Want to reduce term on mortgage

Ansa

I don't know.

Do I -

a) remortgage now with new lender for total £85K over 10 years then repay lump sum and what would the final result be?

b) remortgage now for slightly better rate - using lump sum to pay off mortgage account 2 in full and then remainder off longer term mortgage and what would the final result be

c) a.n other option - is there one?

: think :

Rebob

Just take the 10k into the bank and ask to make a capital repayment. I would pay it on loan 1 or 3 as they have a higher interest rate. When you make a capital repay you can ask for your payments to remain the same and so shorten the length of the mortgage.

Personnally I would pay it on loan 3 and then chip away at the other 9k remaining.

md_14uk

You rates of 6.39-7.5% can easily be beaten... I'd remortgage the £85k to £75k at a lower rate, i'm not sure what the repayments would be but my bet is that you could take a couple of years of at least...

...A quick search on Moneysupermarket.com shows a 5.5% fixed rate for 10 years would cost you £809pm, dropping this to 6 years would cost £1220 (slightly more than your paying now...

So i'd defo go for a remortgage...