Flexible mortgage to allow setting up a business

niccol

This is my first post after joining today so bear with me if i havent searched fully before diving in with questions.

We are coming to the end of a fixed 2 year deal with Nationwide at the end of October 2007. We would like to pointers as to the best way to go please.

House valued at £280,000. Mortgage £175,000. Joint income £100K
One credit card with £6,500 on it, no other debts. I presume a good credit history, we never miss payments etc.

We want to re-mortgage for £180,000 (15 year term) and have £50,000 available to draw down on (to start a business).

Nationwide dont allow additional borrowing for business purposes. Abbey will do and dont care what you want the extra money for as long as you have income to pay for it and enough equity which we do on both counts. We havent really looked anywhere else except Nat West who want you on their Private Banking but their arrangement fee's were high.

My over-riding concern is that with a Flexible mortgage on a large amount if the interest rates go up, 1% = approx £100, but that does give the flexibility for starting business and should we have some extra to pay off the mortgage there arent any penalties.

Also is the Private Banking (incomes over £75k) a good idea. There were quite a few perks that we would definately use, but not sure if its gimmicky.

Sorry to ramble on, hope i have included enough details. Many thanks.

silvercar

You could take an offset mortgage with anyone, fixed rate for security, then leave £50,000 in the offset savings account until you need it. You can set it up so you only pay interest on the outstanding amount to keep payments low.

We took ours with the Coventry, was fixed at 4.99% summer '06. Undoubtedly rates have gone up, but they do a good fixed rate offset product.

toonfish

you can get fixed rates that are flexible too.