Help with a remorgage

jackbauer_2

Hello
Just coming to the end of a 2 year fixed deal at Northern Rock at 5.89
I have an outstanding mortgage now of £67,888 on a property valued at £80k
I earn 18k a year and would like 11k additional borrowing to consolidate debt.

Northern Rock have offered me
2 years fixed at 7.89 with a 395 arrangement fee and 295 add borrowing fee
this would take my payment to £562 a month, i have 33 years left on mortgage (im only 22)

What do you think of this deal?
Can I get better?
Im with Northern rock because their income multiples were very good for me 2 years ago when buying for first time.

Any help appreciated

Bauer

foot_loose

try abbey as they do 5x your income

or go to a fees free mortgage broker.

ponsmort

Ouch - that is a high rate! However, if you borrow an extra 11k that woul make you 'loan-to-value' 99%. It is unlikely that you'll get a re-mortgage at more than 95%. If you werent borrowing the extra then definiteky worth changing....

jackbauer_2

any other ideas

Jonbvn

That rate is very high. However, since you are looking for 100% LTV, your options are very limited.

Have you tried a whole of market broker?

leris

hi,
I agree with ponsmort & Jonbvn that that is a high rate!

herbiesjp

There are some cheaper options out there, but the fact you are looking at 100% borrowing again means that the choice is pretty restricted for you

In your situation I would speak to a professional to make sure you understand the implications of what you are doing, and to make sure they find you a suitable product.

jackbauer_2

think im gonna leave the additional borrowing just now and just get the remortgage sorted.

i do have a few late payments to credit cards on my credit report, will this cause me any problems? I think it would be ok because its secured borowing.


does anyone know of any good 5 year fixed rate deals out there?