Mortgage dilemma

tini1970

I have a mortgage which is tied in to an Isa/Life Insurance. Because I now live on the Isle of Man I have found out that I need to cash in the Isa (or suspend it). I want to change to a Buy to Let mortgage and intend to put most of the cashed-in Isa against the outstanding mortgage. After I have done this I will have approx. £22k left to pay. I cannot find a Mortgage lender who is willing to lend me such a 'tiny amount'. I already have a new tenant in flat who has signed the lease until May 2014. Also, I have to do this before the end of October. Anyone got any ideas or will I have to approach the bank for a loan?

Crashandburn

Some lenders don't have minimum loan amounts

Another solution could be to apply for the minimum loan of say £25,001 with some lenders and then overpay straight away with the 10% overpayment function. That would be close to you circa £22k loan needed. Or some buy to let lenders allow unlimited overpayments

ACG

Speak to a broker, there are lenders who will lend that amount, i assume they would also do it on BTL too.

HappyMJ

tini1970 wrote: »

I have a mortgage which is tied in to an Isa/Life Insurance. Because I now live on the Isle of Man I have found out that I need to cash in the Isa (or suspend it). I want to change to a Buy to Let mortgage and intend to put most of the cashed-in Isa against the outstanding mortgage. After I have done this I will have approx. £22k left to pay. I cannot find a Mortgage lender who is willing to lend me such a 'tiny amount'. I already have a new tenant in flat who has signed the lease until May 2014. Also, I have to do this before the end of October. Anyone got any ideas or will I have to approach the bank for a loan?

If your credit is good it's probably cheaper to get an unsecured personal loan. The rates are similar to buy to let mortgages and there usually are no fees. Then you can use the money to pay off the mortgage in full and have no mortgage. If all the money is used to pay the mortgage off then you can still use the interest as an expense....so don't borrow any extra as it'll get too confusing if you use some of the money for other purposes.

Crashandburn

Difference in the two being that the personal loan will be over a much shorter term than the mortgage which could lead to higher monthly payments. Get some advice

tini1970

Thanks guys/gals. Think i'd best speak to a financial advisor soon and I know a man that can! The main problem is living on IOM and having property in UK, that's what the lenders don't like..but I'm not living here for the financial benefits:)