Remortgage with only 2 years left

dcfc67

What about taking out a personal loan to clear the mortgage

Sainsburys Bank £10000 over 24 months is £428 a month

getmore4less

dcfc67 wrote: »

What about taking out a personal loan to clear the mortgage

Sainsburys Bank £10000 over 24 months is £428 a month

If they can get 2.59%

puddy28cat

I was unable to get a personal loan to repay me mortgage as apparently this is not allowed! Therefore I decided to stay where I was.
I received my new monthly payment letter the other day to say my payments where going from £480 per month to £505 per month.
Now as the internet rate is only changing from 3.09% to 3.99% I cannot see how this can possibly be correct. I phoned the Halifax today and they insist this is correct. This is dispite the fact I have it in writing when I took out this mortgage in 2014 that my payments would increase to just £485.
I have asked for a breakdown of their calculations.
My question is, I can afford to pay the higher amount and if I do so, at the end of the mortgage will I have been robbed by the Halifax by over £500 or will I actually find it all works out in the end and my mortgage will be finished sooner?

robatwork

It has been mentioned on here before that the bank giving the loan doesn't care what you do with it once they have paid it into your account. For example you may want it for house improvements, but suddenly get an illness that you elect to pay for and get specialised surgery abroad out of that money. Nobody would care.

Of course I am not for one minute suggesting you tell the bank you are taking the loan for anything other than the true reason.

middleclassbutpoor

robatwork wrote: »

It has been mentioned on here before that the bank giving the loan doesn't care what you do with it once they have paid it into your account. For example you may want it for house improvements, but suddenly get an illness that you elect to pay for and get specialised surgery abroad out of that money. Nobody would care.

Of course I am not for one minute suggesting you tell the bank you are taking the loan for anything other than the true reason.

What are you suggesting then? :rotfl:

enthusiasticsaver

On a small mortgage as you are nearing the end I would stick with SVR and overpay to get rid of it asap.

getmore4less

puddy28cat wrote: »

I was unable to get a personal loan to repay me mortgage as apparently this is not allowed! Therefore I decided to stay where I was.
I received my new monthly payment letter the other day to say my payments where going from £480 per month to £505 per month.
Now as the internet rate is only changing from 3.09% to 3.99% I cannot see how this can possibly be correct. I phoned the Halifax today and they insist this is correct. This is dispite the fact I have it in writing when I took out this mortgage in 2014 that my payments would increase to just £485.
I have asked for a breakdown of their calculations.
My question is, I can afford to pay the higher amount and if I do so, at the end of the mortgage will I have been robbed by the Halifax by over £500 or will I actually find it all works out in the end and my mortgage will be finished sooner?

What balance & payments to the £ along with terms to the month were on the previous and this schedule


if you were paying £480 on 3.09% and it is now £505 that would be around a £58k mortgage over 12years which we know it is not.


if you were paying £480 on £10650 @ 3.09% in May
that was around 1 year 11 months full term

did you round to £480? 1y 11m is £477.50

at 3.99% that would have been £481.75

2 months later would have a balance of around £9750

over 1y 9m 3.09% £477.50, 3.99% £481.50

over 1y 8m 3.09% £500.79, 3.99% £504.70


I suspect they have lost a month off the term to get the £505 figure

robatwork

middleclassbutpoor wrote: »

What are you suggesting then? :rotfl:

I'm suggesting I don't get banned!