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Any way out of a secured loan with mortgage

KittyBoo_2
Posts: 676 Forumite
4 years ago I bought my council house and a couple of years later I borrowed some additional money which took the total cost to £70,000.
Is there any way the loan can be separated from the mortgage or is it always going to be one sum?
Can it be split if I moved to another mortgage provider?
I am with the Halifax at the momentand have 16 years left to pay at £550 a month and have a fixed rate mortgage which lasts until 2010.
Is there any way the loan can be separated from the mortgage or is it always going to be one sum?
Can it be split if I moved to another mortgage provider?
I am with the Halifax at the momentand have 16 years left to pay at £550 a month and have a fixed rate mortgage which lasts until 2010.
NSK Zombie # SFD 7/15 Food Bank £0/£5
Food £73.57/£122 (incl. pet food) Petrol £20/£40
Exercise 2/15 Outings 1/2
Debt :eek: £18,917
Food £73.57/£122 (incl. pet food) Petrol £20/£40
Exercise 2/15 Outings 1/2
Debt :eek: £18,917
0
Comments
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You can split the borrowing if you amend the period of each chunk. i.e. original mortgage over 20 years and further advance over 10 years. The mortgage provider would segment the borrowing although it would still appear on the same account.
The cost of doing that with another lender is going to be heavy with you being in a fixed rate tie in period so it probably isnt worth it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks dunstonh.
Would I be able to pay extra off the loan part of the borrowing if the two amounts appeared on the same account?
How would I keep track of it and what would I need to say to the Halifax to get the ball rolling.
The loan part of the package really bumped my mortgage up and it is secured against my house.
I just wondered if it was good way of reducing debt that was secured on my house if I split the two amounts and started to pay off the loan.
Would splitting it then reduce my mortgage payments?
ThanksNSK Zombie # SFD 7/15 Food Bank £0/£5
Food £73.57/£122 (incl. pet food) Petrol £20/£40
Exercise 2/15 Outings 1/2
Debt :eek: £18,9170 -
If you are effectively asking if you can unsecure the load on your house, unfortuantley not.
The loan company will have 2nd charge on the house, that means if you were to default on your mortagage on loan and the house was reposessed the mortgage comany would get there outstanding money first then the loand comany would get theres.
depending on the size of the loan taken out it may be best to either remortage both the loan and exisiting mortgage into 1 or to take out an unsecured loan and pay off the secured one, probably over a shorter period of time paying the same amount.0 -
The mortgage and the loan are both with the Halifax.
Would that make any difference?NSK Zombie # SFD 7/15 Food Bank £0/£5
Food £73.57/£122 (incl. pet food) Petrol £20/£40
Exercise 2/15 Outings 1/2
Debt :eek: £18,9170 -
a lot easier if you gave us the facts
size of each component, apr and over what period.0 -
My original mortgage in 2003 was for 20 years £36,00 fixed rate for 2 years at 4.290%
When this ended I stayed with the Halifax and was offerred a 5 years fixed rate of 5.75% (ends 2010).
I remortgaged £27,00 at a rate of 6.75% in 2004.(ends 2010)
I had a secured loan for £14,500 in 2006 at rate of 5.75% which ends 31/10/08.
They all have 16 years left to run.
Thanks for your replies.NSK Zombie # SFD 7/15 Food Bank £0/£5
Food £73.57/£122 (incl. pet food) Petrol £20/£40
Exercise 2/15 Outings 1/2
Debt :eek: £18,9170 -
Should have said that this is a repayment mortgage.NSK Zombie # SFD 7/15 Food Bank £0/£5
Food £73.57/£122 (incl. pet food) Petrol £20/£40
Exercise 2/15 Outings 1/2
Debt :eek: £18,9170
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