Re-mortgage a property to clear off a loan, what are your thoughts?

JimmyTheWig

marathonic wrote: »

Another option - pay as much as possible off your loan over the next 2 years. If you manage to pay off half, then apply for another loan of £12,500 over 5 years and use the proceeds to clear the remainder of your current loan.

That'd free up your finance a good bit in 2 years rather than 5.

The trouble is the OP is looking to reduce his monthly cost. Paying the loan off quicker would increase it.

But hold on...

ideal_knowledge001 wrote: »

I am hoping in 2 years to clear it all off anyways

Then I don't see the need to restructure it over more years if you can, on average at least, afford double the repayment?

ideal_knowledge001

JimmyTheWig wrote: »

Then I don't see the need to restructure it over more years if you can, on average at least, afford double the repayment?

I never talked about increasing the term, what I wanted was the quickest way to achieve flexibility to my monthly wages. I don't want to be paying £500 every month for the next 5 years, I would rather try to re-mortgage and clear it off if possible within 6 months, or with the help of my other half clear it off in around 2 years, but with life you never know the other half may not be there so I was thinking what would be best to do so I don't have to stick to paying it for 5 years.

After this loan payment and mortgage payment goes out of my account, I don't have much left.

amnblog

You have a good rate on the loan, it is not secured on your property, you can afford the payments.


The rest of the thread is pretty much redundant - stay as you are.

ideal_knowledge001

amnblog wrote: »

You have a good rate on the loan, it is not secured on your property, you can afford the payments.


The rest of the thread is pretty much redundant - stay as you are.

Ok, I just didn't know how re-mortgaging exactly would've worked but all is clear now. Thanks everyone for your input, been educational.