help choosing a mortgage with little/no redemption charge

toonfish

you could do this, even if the current deal is showing as arrears but you will be looking at 9.5-10% rates.

twenty_20

toonfish wrote: »

you could do this, even if the current deal is showing as arrears but you will be looking at 9.5-10% rates.

geez man thats high :eek:

think thats the best out there ??

financial_solution

Twenty 20,

With the re-mortgage reates seeming so onerous (and if the rates arent so horrible the redemption penalties are likely to be so) why not consider a secured loan. The rates will be comparable, if not lower, than a sub-prime remortgage. You will only be paying the higher rate on the additional borrowing, and your mum can continue with the current mortgage paying just the extra £30.00 pm.
If you keep the borrowing regulated (below £25,000) you will get a much better redemption penalty which will be on a lower loan also so much better.
AS your mum is on DLA she may need independent Legal Advice to satisfy the lender that she is fully aware and not being taken advantage off.

This is just an idea and perhaps another way of looking at the situation.

Good Luck, Happy to help,

Regards,

Mark

twenty_20

financial_solution wrote: »

Twenty 20,

With the re-mortgage reates seeming so onerous (and if the rates arent so horrible the redemption penalties are likely to be so) why not consider a secured loan. The rates will be comparable, if not lower, than a sub-prime remortgage. You will only be paying the higher rate on the additional borrowing, and your mum can continue with the current mortgage paying just the extra £30.00 pm.
If you keep the borrowing regulated (below £25,000) you will get a much better redemption penalty which will be on a lower loan also so much better.
AS your mum is on DLA she may need independent Legal Advice to satisfy the lender that she is fully aware and not being taken advantage off.

This is just an idea and perhaps another way of looking at the situation.

Good Luck, Happy to help,

Regards,

Mark

thanks for your response financial solution, i appreciate it.

if i were to go for a secured loan tho, it would only be a single application, my mother only, and im not sure she'll be able to obtain this.

thanks again

financial_solution

Twenty 20,

I am confident you could be added to loan.

The cheque may have to be in joint names or "possibly" colely in your mums name, I cant see them letting it be in your sole name, I could check if you are interested let me know.

regards,

mark

toonfish

you can't do a secured loan without a remortgage as the OP doesn't own the property - mother has next to no income. Again you would be looking at big fees, high interest rates, redeption penalties over £25K and probably repayment loan only. I would bet that an adverse remortgage is cheaper overall, providing the plan to renovate and sell is carried out.

The rate is high but there is no redemption penalty, cheaper rates would probably come with a 5 or 6% early repayment charge

You shouldn't keep offering to "help people" financial solution, canvassing for business is not in the spirit of this site and you do it with almost every post.

MortgageMamma

toonfish wrote: »

I'm happy for you to prove me wrong!

I'm not out to prove anything, and even if I wanted to
1, you may well be right
2, I dont have time I'm too busy, I will probably have to work all weekend
I was just saying we didnt have much detail and should not jump to conclusions without knowing the facts.
Have a nice weekend

MM x

financial_solution

Dear Twenty 20,

You CAN do a secured loan based on joint incomes but the title deeds would remain solely in your mothers name. I am not saying ALL lenders will do it but it can be done.This opinion was given to suggest an option for you to consider. You may well decide that a remortgage is preferable but I still believe that a regulated loan is worth considering.

It seems that toonfish is somewhat blinkered against even "considering" a secured loan. My opinion is it doesnt hurt to look at ALL the options. Remortgaging the full amount at sub-prime rates will give a relatively high monthly repayment but he feels you can get a more favourable redemption facility.

Basically there are swings and roundabouts to all the options and unfortunately you are not in the ideal circumstances and so must make the best decision you can for yourself and your mum. YOU MAY DECIDE NOT TO BOTHER DOING ANYTHING.

Regards,


Mark