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Advice Needed
Lucio_2
Posts: 3 Newbie
Hi there, was pointed to these forums by a friend and whilst I realise it's no substitute for a good IFA, I'd rather go into any meeting prepared with some knowledge.
Basically my fiancee owns a flat, it was purchased on a fixed-rate deal that's due to expire January 2008. The mortgage was for approx. £90,000. Also as she is a nurse, there is an equity loan from the government for another £32,000 which only has to be repaid if we sell the property and then we get hit for 8% APR on any profit we make from the sale, proportionate to the % the original value represented (e.g. approx 25%)
On top of this, we each have about £7,000 of debt in personal loans and credit cards from prior to purchasing the flat.
Basically we want to borrow an additional £12,000 to pay for a wedding when we remortgage at the end of the fixed term but we're totally unsure with the news reports lately, whether or not this will now be possible. If it's not going to be possible, I'd rather stop paying out deposits that we're going to loose as we'd have to cancel or change our plans.
Also, what's the best type of mortgage to aim for? I'd be tempted by another fixed rate even with rates being on the high side atm, so we have at least some hope of planning a budget.
Basically my fiancee owns a flat, it was purchased on a fixed-rate deal that's due to expire January 2008. The mortgage was for approx. £90,000. Also as she is a nurse, there is an equity loan from the government for another £32,000 which only has to be repaid if we sell the property and then we get hit for 8% APR on any profit we make from the sale, proportionate to the % the original value represented (e.g. approx 25%)
On top of this, we each have about £7,000 of debt in personal loans and credit cards from prior to purchasing the flat.
Basically we want to borrow an additional £12,000 to pay for a wedding when we remortgage at the end of the fixed term but we're totally unsure with the news reports lately, whether or not this will now be possible. If it's not going to be possible, I'd rather stop paying out deposits that we're going to loose as we'd have to cancel or change our plans.
Also, what's the best type of mortgage to aim for? I'd be tempted by another fixed rate even with rates being on the high side atm, so we have at least some hope of planning a budget.
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Comments
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How much is the flat now worth ?
What sort of % of the flats value are you hoping to remortgage for?0 -
Flat's purchase value was £119,500 though the area seems to be quite high demand with other flats (not ground floor) being listed for 139,000.
I presume though any extra borrowing would be against the original value, not current market price.0 -
Extra borrowing would be against current market valueI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Ok, if it's against current value, then the question becomes who'se the best person to talk to? Do we pay out for a consultation with an independant financial advisor or do we simply go for some "free" advice from a mortgage broker who gets paid based on the mortgages he sells us.0
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You go for whichever you feel most comfortable withI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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