Stuck on SVR - unless I borrow more

[Deleted User]

MortgageMamma wrote: »

There are lenders who will do a remortgage for less than 25k, I've just made a quick call and got you a list whilst making a coffee.

Barclays, Coventry Building Society, Halifax, Leeds Building Society, Principality Building Society, Skipton Building Society, Santander (specific products for <25k, so speak to them before assuming you can have a published deal), Virgin Money.

As the loan amount you require, a fee free deal would probably be most beneficial, but ensure you do the maths.

I am not saying you fit the criteria of these lenders, just felt you were in a position where you could benefit from a starting point if you are doing your own research.

If you want a broker to do the research, you will most likely have to pay a fee to supplement the commission from the mortgage lender, as its likely to be nil or virtually nothing for such a small loan amount so is unlikely to cover the brokers costs doing the case - which for such a small loan amount could cost more than the savings whilst stuck on SVR.

Good luck.

Ps if you are interested in over payments, read the lending criteria of each mortgage on the lenders website or do a live chat with them and watch out for the early repayment charges too.

MM

Thanks, but I can't move part of my mortgage. Or can I?

Like I said, £88K on lifetime tracker of Base+1.1% and £21K now on SVR.

It would probably be a bad idea to move away from the lifetime tracker...

[Deleted User]

Well my plan was:-

1. Borrow £10 extra so I can get on to lower rate.
2. Pay this all off straight away (not going to admit to bank I plan to do this). (Allowed to pay off 10% with no penalties but 1% on the rest but only £70)

Just spend almost an hour on the phone with RBS going through my income and expenditure. Now I've got to have a 2 hour appointment with a mortgage adviser!

Just to borrow £10K more. Taking LTV from 41% to %43.

Seriously considering just gettng a personal loan at 3% over 7 years for the £20K. Paid off quicker then and its about £90 a month more.

Thrugelmir

[quote=[Deleted User];74873061]I would if I could BUT thats the point - Im paying SVR UNTIL its paid off.[/QUOTE]

Your lifetime tracker may not remain low indefinately. Anything, however small , paid off the mortgage will have an immediate impact. Given that interest is calculated daily and charged monthly. Focusing on the debt owed is equally important as the rate on the product. The lifetime tracker is eventually going to be beneath £25k as well.

[Deleted User]

Thrugelmir wrote: »

Your lifetime tracker may not remain low indefinately. Anything, however small , paid off the mortgage will have an immediate impact. Given that interest is calculated daily and charged monthly. Focusing on the debt owed is equally important as the rate on the product. The lifetime tracker is eventually going to be beneath £25k as well.

Not sure I quite understand....

My mortgage appears to now be made up of 5 sub-accounts.

1 of these is the main bulk on life time tracker, the other 4 (whcih add up to £21K) are now on SVR.

I'm sure in the past I've been allowed to specify which sub-account I pay off when making a manual payment? i.e. I say please use this £x to pay into sub-account x.

getmore4less

Thrugelmir wrote: »

Your lifetime tracker may not remain low indefinately.

At base + 1.1% it is likely to keep pace with the best mortgage rates around and cheaper than personal loans and other forms of debt.
(BT fees are often more than this)

For the OP securing good rates for their other debts is the time critical element of the current restructure.

Zero_Sum

[quote=[Deleted User];74873397]Thanks, but I can't move part of my mortgage. Or can I?

Like I said, £88K on lifetime tracker of Base+1.1% and £21K now on SVR.

It would probably be a bad idea to move away from the lifetime tracker...[/QUOTE]

Base + 1.1% is 1.85%. Im sure you can get 2 year deals for less than that.
Id just remortgage the whole lot on a single deal, as even if you borrow more the 3% you quote is still quite high which would mean overall youd probably be paying a bit over 2% anyway (i havent done the maths). Which can easily be bettered, especially on short term trackers

[Deleted User]

Zero_Sum wrote: »

Base + 1.1% is 1.85%. Im sure you can get 2 year deals for less than that.
Id just remortgage the whole lot on a single deal, as even if you borrow more the 3% you quote is still quite high which would mean overall youd probably be paying a bit over 2% anyway (i havent done the maths). Which can easily be bettered, especially on short term trackers

Probably but not cheaper when you take into account the fees/charges...