A little advice for my brother please

keatergreyhound

As the title says im posting this on behalf of my brother who is a) totally rubbish with money and b) totally lost as to what to do
Brother owns his own home worth £110k mortgage of 30k outstanding fixed rate which which hes tied in with approx 15 years to ron on payments of around £450pcm
HIs soon to be x wife is needing to be settled withon the next 2 months the sum of 40k
Ive also found out today he has a credit card with 6k on it
He earns 26k a year and ive got a feeling his credit rating wont be that good
He has no option but to take the money from the equity of the house to pay off his x and then his credit card
Ive done his SOA with him and cut everything right back
To throw a spanner in thr works even more in around 12 months hes planning on selling up and moving 300 miles to be with his now girlfriend
I dont think he can simply remortgage for a fixed period because if he needs to clear off the debt in 12 months when he sells his home to move in with his girlfriend wont he have to pay high charges for early redemption
I guess im asking someone for their opinion on his options of how he can raise the 40k for around a year with the least charges going againt him when he sells in a year
he wont be buying a new house in a year as his girlfriend has one already
Thanks in advance for any help
Im going to the builiding society with him next week and I dont want him being sucked in to something he doesnt understand

Dan_Collins_2

Try for a fix with no ties, Coventry have some fixes with no ties, giving you free legals and free val. Fixed rates are beginning to fall so if you can give it a week you may find they go down. The rates are around the 6.30% mark with a big fee of £1000 but at 6.80% you pay nothing.

If that is to high he will have to take a tracker or discount and take the risk, just make sure it is not a tracker that uses LIBOR and that it uses the Bank of England base.

If he is defo selling in 1 year you can take it on interest only as in one year he will pay nothing off anyhow.

Good luck mate