Further advance reason on remortgage

Let_Us_See

What is your level of debt compared to your income?

adamsmt76

We're looking to clear 15k against a combined income of around 90k a year

amnblog

Bit baffled why you did not just get some advice from a competent broker and get this done properly?


Many lenders will do this without a problem (subject to equity and status) -a number won't. A broker would have guided you appropriately.

adamsmt76

I'm starting to think you are right. As it stands no applications have actually be submitted to any providers. We've never gone through a broker as we never thought we needed one. I'm now starting to believe that we'd be better off paying for one.

auroan

Sorry for being blunt here.

But are you insane !! In most cases mortgage debt is the most expensive debt there is when comparing to most high street bank s personal unsecured loans.

On the assumption that a the personal loan is over 3 or 4 years and the mortgage is over 15.....

Have you worked out how much you will pay back on the 15K over the term of your mortagage vs how much the unsecured personal loan is.

As an example (conservative figures);

£15K over 3 years @ 9.9% would cost you £2,292.06 in interest
£15K over 15 years @ 4% would cost you £4,874.95 in interest (more than double)

kingstreet

Best to combine the lower mortgage rate with voluntary overpayments upto the level of the cost of the unsecured loan and get the best of both worlds - lower interest and shorter term.

Let_Us_See

Unless there are other undisclosed issues, placing this re-mortgage with any number of lenders should be possible.

adamsmt76

We currently have 14 years remaining. Historically we have always dropped the term by 2 years every 2 years and that is the intention going forward. On that basis the comparison would be:

15k at 2.3% over 8 years = 1500 interest
15k at 9.9% over the 4 years actually remaining = 3225 interest.

Anyway, we've gone to L&C brokers and asked them to find us a deal with a provider who is comfortable with lending at our LTV on a basis of clearing debt.

The irony is that the majority of this was accrued by making genuine home improvements.

HappyMJ, always a pleasure to encounter a keyboard warrior. We're thinking maybe Vegas for the holiday x