Homeowners loan or remortgage.

capstain411

I have mortgage with hsbc currently fixed until Nov 2019 @2.99%.

My property is worth £231k. Mortgage pending £117k.

I need to release some equity on my property I.e. Borrow £65k more.

Shall I remortgage with Scottish widow who are willing to lend me full amount for fee £300 2 yr fixed @ 2.94 offset facility available. This mean I have to pay Early repayment fee I.e 1% per year

or

Take homeowners loan with HSBC fee of £999 with 2 year fixed at 1.57%.

I am inclined towards remortgage route. Please help.

Thrugelmir

Have either of the lenders asked what the purpose of the equity release is for?

capstain411

Yes
have inquired and both are ok with the purpose

capstain411

Changes to my scenario.

Scottish widow has offered better rate I.e. 2 year offset fixed at 2.49%. Fee of 300.

However I will have to pay £3600 ERC to HSBC.

HSBC on other hand willing to offer 3 year fixed at 2.24 no fee.

However this is in addition to existing mortgage with HSBC fixed at 2.99% for another 3 years.

HSBC wants to operate two seperate account £117k on existing mortgage at 2.99% and new loan of £65k at 2.24%.

HSBC offers sounds very complicated, will this make remortgaging in future messy. As mortgage is on 13 yr term and loan on 25 yrs, monthly payment will be higher than Scottish widows even without offset.

Please need help. Still repenting for fixing mortgage at 2.99% for 5 yrs. do not want to commit one more mistake