Help me remortgage...

Mills

Hi,

I need to remortgage our house.

Looking to get a £250,000 against house value of £200,000, this will clear first and second mortgage and most of our debts.

Yes it is 125%.

Where to go, don't want to pay a fee either.

Have the income to support the £250k.

Anyone out there done this before?

Thanks

Conrad

A few lenders in the 125% bracket, but credit must be squeaky clean. I think you will find fees free is not available for such schemes.

Leon_W

Yes. It used to be fairly easy but it isn't now !

Any whiff of a poor credit rating or missed payments would get the application instantly kicked out. Since Northern Rock were the kings of this sort of thing, and they aren't willing to play ball at the moment, there are only two or three lenders which would even consider it so your choice is limited.

From memory (so don't send the boys round if I'm wrong). If everythings A1 with credit rating and income etc then one lender I'm thinking of would remortgage (the secured part) to 90% LTV which in your case is £180,000. The unsecured element on pretty much on all of these types of mortgages is limited to 25%-30% with a maximum of £30,000 whichever is the LOWER. So in your case the maximum you could get unsecured is £30,000 which coms to a total of £210,000. Now whether this is enough to cover your mortgage and second charge, you only know that. The other debts you allude to could continue as long as income is enough to support them.

Fees. You will have to pay. No lender will remortgage you on your proposed basis "fees free". You will be liable for solicitors and valuation at least.

Hope this helps

Regards

Leon

Beddie

The rate on a 125% mortgage won't be great.

It might be better to only go to 90/95%, get a good deal on interest only and then use any monthly income freed up to reduce the unsecured debts you have, highest APR first. Keep the second charge too if you don't have enough equity to clear it.

Dan_Collins_2

You can get these still and the credit scoring has not changed as much as people think. Northern Rock are the only lender to lower income multiples and make things harder, they have increased rates so they are only used for criteria reasons. You have always had to have a good credit rating for 100%. Future are a little different but please dont use them!

In your case 95% will be secured the max you can have unsecured is 30k so 210k it is. However BM Solution and NR are the only lenders that lend 30k unsecured. Alliance and Leicest are about the best who will go up 25k and they will be beat BM and NR on rate.

If you could borrow enough you would be better off rate and monthly payment than by having a second charge, the same probably for the unsecured but the best advice for the unsecured would be to maybe try and beat the rate by moving it or by trying to use income to pay it early.

You can stillhave the secured part on interest only so you could use the difference to repay the other debt.

Fee fee will not happen, wrong market. For admin lowest is 4-500 and standard is £999 - £1999. If you are a graduate or professional Scottish widows are the best by miles but I think they max at 100% not sure.

Good luck