Coming to end of fixed period, whats out there?

Morgage_Confused

Thats your mortgage current account. Its basically the amount of mortgage you have paid off during your two year fixed rate which you can borrow back at the woolwich svr. I dont touch mine(im also woolwich). Its obviously tempting to borrow the money back but it means you wont have paid off any of your mortgage if you take out the 8k.

longwalks1

Morgage_Confused wrote: »

Thats your mortgage current account. Its basically the amount of mortgage you have paid off during your two year fixed rate which you can borrow back at the woolwich svr. I dont touch mine(im also woolwich). Its obviously tempting to borrow the money back but it means you wont have paid off any of your mortgage if you take out the 8k.

Thanks Mtg Confused
But if I needed the £8k for the home, would that be a good way to get the money? They did explain to me on the phone that if I borrowed the full £8k, and paid back the minimum interest a month (something like £34?) for a year, after a year I'd still only have to pay back the original £8k (kind of like an interest only mortgage), does this sound right? Sorry as I'm not great with numbers :o

Morgage_Confused

Yes theres no doubt its a cheap way of borrowing 8k. As long as you realise in the 2 years of your mortgage you havent paid off a bean of your capital. So you are back to square one. So its basically another two years added to your mortgage.