Mortgage / money juggling advice needed

getmore4less

current situation.

£240k(ish).3.49%.27y..£1145pm
£15k.........4.20%...4y..£340pm
£17k.........6.20%...5y..£330pm
£07k.......17.90%........£105pm (interest)
£03k..........................£90pm (charges)
£282k........................£2010pm Totals.
if you leave as is in 8 months(to give some wiggle room)

£274100.....................£16080 paid out

Option 1, add 39k to mortgage
£279k(ish).3.49%.27y..£1331pm
£3k.........4.20%...4y..£381pm(up payment paid off in 8 months)
[STRIKE]£17k.........6.20%...5y..£330pm[/STRIKE]
[STRIKE]£07k.......17.90%........£105pm (interest)[/STRIKE]
[STRIKE]£03k..........................£90pm (charges)[/STRIKE]
£282k........................£1712pm Totals

in 8 months just the mortgage left

£274800.....................£13696 paid out


Option 2
just move £10k to 0% CC for more than 8 months and ignore min payment.

£240k(ish).3.49%.27y..£1145pm
£15k.........4.20%...4y..£340pm
£17k.........6.20%...5y..£330pm
[STRIKE]£07k.......17.90%........£105pm (interest)[/STRIKE]
[STRIKE]£03k..........................£90pm (charges)[/STRIKE]
£282k........................£1815pm Totals

8months

£274100.....................£14520 paid out

If you can move the 6.2% you will save a bit of interest but not much

getmore4less

matt8787 wrote: »

Barclays tell me its £3 a day once you're over £2,000:

Daily fees are charged on all balances within an arranged overdraft limit.
The daily fees are as follows:
Up to £1,000 - 75p per day
Over £1,000 up to £2,000 - £1.50 per day
Over £2,000 - £3 per day
The maximum arranged overdraft is £5,000.

When barclays changed their charging a while back using the OD was never a good long term stratagy just about every other form of debt is better except payday.

getmore4less

I forgot the BT fees for the 0% they will add to the amount paid out on option 2.

matt8787

Thanks for the calcs and advice. I'll make clearing the OD a priority.

getmore4less

Remember if your lender has good retention deals you should be able to move the current loan independent of the extra lending.

Might be you can sync them later.

Any fees for the extra borrowing.

Did you end up with Chelsea?

matt8787

getmore4less wrote: »

Remember if your lender has good retention deals you should be able to move the current loan independent of the extra lending.

Might be you can sync them later.

Any fees for the extra borrowing.

Did you end up with Chelsea?

Thanks

Yes I'm with Chelsea. I was a first time buyer then, so this will be my first remortgage. I hadn't really thought about Chelsea offering retention deals when the time is up. I was thinking they'd want me to revert to SVR. Perhaps if they are offering good rates in Mar 2016 I can stick with them and as you say, sync to the two loans later.

(The only fees for extra borrowing was £130 admin + £70 valuation fee)

getmore4less

Thing is most of the savings come from the fees/interest on the OD and the high rate CC which is £10k worht of debt.
A 0% BT or purchase deal would cover those if you can get one that big.

The extra advantage of the mortgage extension is the opportunity to lower monthly payments further if money is tight(interest on the loans is not a lot more than the mortgage).

If you have already paid the £200 for the mortgage extension then that may swing it.

ther eis little between the two option till you have to cough upt he £1k if you need to change lender.

That just means a change of lender needs to have a better deal than Chelsea at the time and cover the £1k

The thing is you if you have the offer on the table now there is no gaurantee you will get one in 7-8 months and the 0% CC deal will run out eventualy so there is that risk to think about.

eg. partner decides not to/can't go back to work!