Motgage rates going up

HappyMJ

Your mortgage is too small to see any significant savings by switching. Keep the SVR mortgage and just pay it off ASAP. IF you were to switch you'd have fees when you get a new mortgage which need to be taken into account and wipes out the majority of your savings.

Personally, if you can I'd borrow money from an unsecured lender who is charging less than your mortgage and use the money to pay into your mortgage. Unsecured lenders such as Sainsburys don't charge fees. You'd have a fixed rate with no fees.

getmore4less

£24,491 paying £1138 @1.79 is 22 months £420 interest

same term and a little more interest.

still better fixing(or the tracker)

On this timescale a bit of CC stoozing will work to save a chunk.

THis is what I would do

Switch to the tracker(if realy no fees and a straight retention switch call)
get a long term 0% purchase CC and divert my normal spends to the mortgage

charsun

HappyMJ wrote: »

Your mortgage is too small to see any significant savings by switching. Keep the SVR mortgage and just pay it off ASAP. IF you were to switch you'd have fees when you get a new mortgage which need to be taken into account and wipes out the majority of your savings.

Personally, if you can I'd borrow money from an unsecured lender who is charging less than your mortgage and use the money to pay into your mortgage. Unsecured lenders such as Sainsburys don't charge fees. You'd have a fixed rate with no fees.

i did think about taking out a £24.500 loan to pay off the mortgage, would the payments be less if so i wonder if i could pay more and reduce the term even more

Landofwood

HappyMJ wrote: »

Your mortgage is too small to see any significant savings by switching. Keep the SVR mortgage and just pay it off ASAP. IF you were to switch you'd have fees when you get a new mortgage which need to be taken into account and wipes out the majority of your savings.

Personally, if you can I'd borrow money from an unsecured lender who is charging less than your mortgage and use the money to pay into your mortgage. Unsecured lenders such as Sainsburys don't charge fees. You'd have a fixed rate with no fees.

Can you show me a personal loan cheaper than a mortgage that OP could get please? I'd like to take out one of these mythical 1% loans.

getmore4less

Landofwood wrote: »

Can you show me a personal loan cheaper than a mortgage that OP could get please? I'd like to take out one of these mythical 1% loans.

Unless you can get get seriously low fee super BT the only real options are slow Stooze 0% spend cards.

HappyMJ

charsun wrote: »

i did think about taking out a £24.500 loan to pay off the mortgage, would the payments be less if so i wonder if i could pay more and reduce the term even more

To switch mortgages you have to extend your mortgage borrowing to £25,000. I don't think it's worth the hassle but if you want to go ahead with that then you'll save a little. You'll need to prove you can afford the mortgage payments that you are proposing to make to get approved for the amount and the term. If they don't think you can afford to make the payments in less than 2 years they might suggest you make it 5 years or more which defeats the point of what you're trying to do as you might be limited in the overpayments you can make (usually 10% of balance) whilst in the fixed term. A variable rate mortgage as you have has no restrictions on overpayments.

I'd try and apply for a Sainsbury's loan. It'll only take 10 minutes to fill in the application and you'll get an answer straight away. A £15,000 loan at a fixed interest rate of 3.6% would cost £856.90 a month over 18 months.

I'd then apply for a Post Office CC and balance transfer £9,500 at 0% for 18 months with NO fee it would require repayments of £527.78 per month to clear it in 18 months. Personally, I'd save the money in a Santander 123 current account and earn 3% interest whilst making minimum repayments then clear it in full in 18 months using your savings. If you don't get a £9,500 credit limit then get a Tesco CC as well which has the same offer.

This will probably leave you short each month so get a 0% on purchases credit card and put your shopping on it.

You can overpay the credit card. You can't overpay the personal loan.

If you get into financial difficulties then you can reduce the payment on the credit card to 1% of the outstanding balance. You can also ask to take a payment holiday on the personal loan or if you saved the credit card payments into the Santander 123 account just use that to make the payments on the personal loan.

getmore4less

With a the lender offering 1.59% fee free tracker anything else over this is madness.

BT CC won't work unless there is other debt are there any SBT CC transfers?

Landofwood

HappyMJ wrote: »

To switch mortgages you have to extend your mortgage borrowing to £25,000. I don't think it's worth the hassle but if you want to go ahead with that then you'll save a little. You'll need to prove you can afford the mortgage payments that you are proposing to make to get approved for the amount and the term. If they don't think you can afford to make the payments in less than 2 years they might suggest you make it 5 years or more which defeats the point of what you're trying to do as you might be limited in the overpayments you can make (usually 10% of balance) whilst in the fixed term. A variable rate mortgage as you have has no restrictions on overpayments.

I'd try and apply for a Sainsbury's loan. It'll only take 10 minutes to fill in the application and you'll get an answer straight away. A £15,000 loan at a fixed interest rate of 3.6% would cost £856.90 a month over 18 months.

I'd then apply for a Post Office CC and balance transfer £9,500 at 0% for 18 months with NO fee it would require repayments of £527.78 per month to clear it in 18 months. Personally, I'd save the money in a Santander 123 current account and earn 3% interest whilst making minimum repayments then clear it in full in 18 months using your savings. If you don't get a £9,500 credit limit then get a Tesco CC as well which has the same offer.

This will probably leave you short each month so get a 0% on purchases credit card and put your shopping on it.

You can overpay the credit card. You can't overpay the personal loan.

If you get into financial difficulties then you can reduce the payment on the credit card to 1% of the outstanding balance. You can also ask to take a payment holiday on the personal loan or if you saved the credit card payments into the Santander 123 account just use that to make the payments on the personal loan.

I'm not sure I follow you 100%. You say you'd save the money, are you sure the post office credit card offers fee free transfers to a bank account?

PixelPound

Landofwood wrote: »

I'm not sure I follow you 100%. You say you'd save the money, are you sure the post office credit card offers fee free transfers to a bank account?

It could be like Barclaycard who transfer positive balances to a bank account for free. So you use other cards to BT money to, in this case the post office.

HappyMJ

Landofwood wrote: »

I'm not sure I follow you 100%. You say you'd save the money, are you sure the post office credit card offers fee free transfers to a bank account?

Doesn't everyone have a super balance transfer card...or is that just me? As above a Barclay's card can be used or in my case a Virgin card. I can easily get money into my current account via the Virgin card.