£40,000 secured loan against property... easy buy scheme

Thrugelmir

kayleigh_notts wrote: »

@sinizterguy hopefully would be able to save around £8k - £10k

You need to decide whether to put the money in a savings account or overpay the mortgage.

Is an additional £40k of mortgage affordable? Just a thought that you should keep your options open.

Lastly perhaps time to review your household budget and see what could be cut out to increase your savings/mortgage overpayments. While it may be tough in the short term to make cuts the longer benefits will be worth having.

Foxy-Stoat_3

You need to start saving to pay the deposit that you borrowed.

If you can save £300 a month for the next 10 years you should be ok.

Caz3121

Foxy-Stoat wrote: »

If you can save £300 a month for the next 10 years you should be ok.

although the OP only has until 2019 to come up with the £40k so would probably need to save more than double that each month (depending on when in 2019 the 10 years is up this will around £700 to £800 per month)

kayleigh_notts

Caz3121 wrote: »

although the OP only has until 2019 to come up with the £40k so would probably need to save more than double that each month (depending on when in 2019 the 10 years is up this will around £700 to £800 per month)

Yes Caz you are correct i have until July 2019 to repay the £40k... It is our faults for ignoring it for the first 5 years but that was a tough time with this being our first property so we wanted to make ends meet with the mortgage and the insurances that are required aswell as everyday household costs...

im starting to feel like the only way possible is going to be to sell the property...

I have been looking though and there is a government backed scheme called "help to buy" which it seems we would qualify for and you get upto 25 years to pay them back and same again first 5 years interest free but then intrest increases with inflation but you can staircase your repayments so we would learn from our mistake this time round and we would look to start saving for the staircase repayment method from year 1...

its the only way i can see out of this sticky situation at the moment

kayleigh_notts

Thrugelmir wrote: »

You need to decide whether to put the money in a savings account or overpay the mortgage.

Is an additional £40k of mortgage affordable? Just a thought that you should keep your options open.

Lastly perhaps time to review your household budget and see what could be cut out to increase your savings/mortgage overpayments. While it may be tough in the short term to make cuts the longer benefits will be worth having.

we would deffinately overpay on the mortgage as we wont find savings that offer 2.5% so with the mortgage calculating their interest on daily basis we are going to over the mortgage...

As for an additional 40k of mortgage... at present we owe £108k on the current mortgage so would need 148k mortgage... we purchased the property for £160k july 2009 so if they value it the same im over 90% LTV

Every way we turn there is a brick wall

superbigal36

Simply call Nationwide and ask what value their computer currently has for your property.
Then take it from there.

kayleigh_notts

oh why will nationwide be able to tell me ??

Thrugelmir

kayleigh_notts wrote: »

we would deffinately overpay on the mortgage as we wont find savings that offer 2.5% so with the mortgage calculating their interest on daily basis we are going to over the mortgage...

As for an additional 40k of mortgage... at present we owe £108k on the current mortgage so would need 148k mortgage... we purchased the property for £160k july 2009 so if they value it the same im over 90% LTV

Every way we turn there is a brick wall

If you are concerned with an interest rate of only 2.5%. Then selling may be worth considering. As rates are only heading one way in the future.

superbigal36

kayleigh_notts wrote: »

oh why will nationwide be able to tell me ??

If you were doing a top up mortgage application their sytem will have an instant current value for your property.
Of course you may agree or disagree with it but it could be just what you need to know.

kayleigh_notts

Thrugelmir wrote: »

If you are concerned with an interest rate of only 2.5%. Then selling may be worth considering. As rates are only heading one way in the future.

I think you have misunderstood me... Somebody asked above about wether I would make overpayments or put my money into a savings account... I'm saying I would make overpayments on my 2.5% mortgage as we wouldn't get a instant access savings account offering 2.5%