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Remortgage Advice
Sarah46
Posts: 4 Newbie
Only have @ £17,500 left with 3 years but on SVR 4.99%. Is it worth me remortgaging to better rate as I see the admin/set up fees are high & I would struggle to find that initial outlay?
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Comments
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Can you switch products with your current lender?
On a £17k Mortgage it would be better to go with a product with no fees.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I am not sure, I don't understand them that well so wouldn't know what to ask for? I've just checked & as I have less than 51/2 years left I cannot change the deal0
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there are other lenders that would accept a mortgage of 5 years with less than 17000 on it. I can only think of one or two. ACG is correct you would need a fee free deal on a better rate to make the swap worthwhile.
Are you in a position to overpay the mortgage to get it paid off faster?I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Not at the moment re overpayment. This is why I'm not sure what I'm looking for. Am wondering whether it's worth getting a loan for say £15K to pay it off and then just pay the loan off?0
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I don't think banks accept "paying off mortgage" as an acceptable reason for taking out a personal loan.
Disregarding the above, if you do get a personal loan at a rate low enough to make the effort worthwhile, nothing stops you from using it to pay off your mortgage.
If you get a personal loan at (say) 3.5%, that would potentially save you about £750 of interest over 3 years on £17,500.Not at the moment re overpayment. This is why I'm not sure what I'm looking for. Am wondering whether it's worth getting a loan for say £15K to pay it off and then just pay the loan off?0 -
You need to look for a mortgage product where the rate is lower, there are no fees to swap and ideally get free legals too. Most lenders have a fee free option, the rates are higher than the products with fees built in as they have to make some money. Here is a list of lenders who are happy to lend under £25k. You'd have to speak to them individually to see if they were OK with the five year term though.
Barclays
Coventry Building Society
Halifax
Leeds Building Society
Principality
Skipton Building Society
Santander – specific products
VirginI am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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