Fixed deal running out but less than £10k to pay

sweaty_betty

When our mortgage deal finishes, we’ll owe £25k, but should be in a position to pay off £15k of this (without penalties).
Will we be able to get a new mortgage deal for a year to pay off the rest of the mortgage (£10k)?  Or will we need to switch to the SVR?  Or will we not be able to get a mortgage and need to get a loan instead?
any advice on this would be great thanks

onlyfoolsandparking

How long is left on your term?

Edit: just re-read it, you say you have a year left, correct? I don't think you can get a mortgage with a 'one year term' from a new lender because of minimum requirements, I could be wrong and one of the mortgage brokers on here would have better advice but my short answer is would a SVR on only 10k be that bad? 

touch*my*food*feel*myfork

i think it will depend who you are with - Nationwide offer mortgages to existing customers with at least £5,000 to pay off, but you have to have a least £25,000  for non customers

sweaty_betty

Thanks we’re currently with the co-op.  It would be a pain to switch, but will if we have to.
We have a year left on our deal.  At that point we would pay off £15k from investments (presuming they’re still there, a year is a long time).  Then still owe £10k, so would need to take a mortgage for one year, or a bank loan (not ideal) to cover the remaining £10k.

D.L

Make sure you when you account for the fees if signing up to a new mortgage. On low sums like this, the product/valuation fees will often outweigh any interest savings from a higher SVR.

TrickyDicky101

Why not stay on the SVR and repay as swiftly as possible?  There's hassle involved in obtaining a new mortgage (not a customer retention product) and for the sake of a couple of hundred quid in interest it might be worthwhile just remaining with the Co-op?

sweaty_betty

TrickyDicky101 said:

Why not stay on the SVR and repay as swiftly as possible?  There's hassle involved in obtaining a new mortgage (not a customer retention product) and for the sake of a couple of hundred quid in interest it might be worthwhile just remaining with the Co-op?

That’s what I’m wondering. Just trying to weigh up all the options.

Thrugelmir

How long does your mortgage term have left to run? 

[Deleted User]

With 1 year left to run you are mainly paying capital.  The £10k debt will cost you around £15 a month on a decent deal and probably £25-£30 on SVR.   So if you want to move your mortgage to save £180 over a year then you will need to find a lender taking small mortgages with minimum term of 1 year and the cost of moving would need to be less than £180.    I cant see a broker really bothering with a case like that unless they charge a decent fee in which case you will pay more than you would save.  
Otherwise you research it yourself and decide if the time you spend doing it is worth the saving.  

Personally I wouldnt bother, I would just run it down on SVR