Minimum Mortgage amounts

notes1

Originally posted this on Mortgage Free Wanabee forum but no ones answered. Hoping for some advice from here.


I expect at the end of January to have enough money in various savings and car value to leave around 7k left on my mortgage (if all savings used to pay this off).
The exact amount owing at the moment is about 99k, and I have 15k car equity (which I intend to sell soon and get a new car on PCP) and use the money towards mortgage. 
I have around 77k in various banks and accounts that I will be channeling into the mortgage over the next several months, as and when the fixed terms come to an end. 
I will need to keep some of this money available as an emergency fund so I suspect I will still need a 15 to 20k mortgage when this is done. However, I will be due to remortgage as well and I understand that its difficult to get a mortgage for less than 25k - Is this true ? Should I keep the mortgage above 25k for a while in order to get a good remortgage deal ?

K_S

notes1 said:

However, I will be due to remortgage as well and I understand that its difficult to get a mortgage for less than 25k - Is this true ? Should I keep the mortgage above 25k for a while in order to get a good remortgage deal ?

@notes1 Yes, your choice of products will go down a bit below 25k but there should still be mainstream options available and it shouldn't make a huge difference to the cost of the mortgage.

As an example, when I do a quick sourcing of 2 year remo products for a loan size of £25,000 and £24,999 the total cost over a 2 year period comes to about 5k for the 25k loan and about £5,350 for the £24,999 loan. And that's only because the chart topping mainstream lender (at this moment for that mortgage size) drops off below 25k. That might well not be the case tomorrow or when it's time for you to go ahead.

You can do a similar comparison using the MSE mortgage finder and sorting by 'MSE total cost assessment'..

getmore4less

Who is your current lender?

You may not need to remortgage just do a product transfer. 

HobgoblinBT

 Loans below £25000 to consumers rather than limited companies and governed by the consumer credit act, and aren’t usually secured, so I doubt you will find many if any mortgage providers for a loan below this level.  Also, product fees, mortgage broker fees and any legal fees would likely outweigh any lower interest rate between your current lender’s standard variable interest rate, compared to a lower rate available from a competitor. 

notes1

K_S said:

notes1 said:

However, I will be due to remortgage as well and I understand that its difficult to get a mortgage for less than 25k - Is this true ? Should I keep the mortgage above 25k for a while in order to get a good remortgage deal ?

@notes1 Yes, your choice of products will go down a bit below 25k but there should still be mainstream options available and it shouldn't make a huge difference to the cost of the mortgage.

As an example, when I do a quick sourcing of 2 year remo products for a loan size of £25,000 and £24,999 the total cost over a 2 year period comes to about 5k for the 25k loan and about £5,350 for the £24,999 loan. And that's only because the chart topping mainstream lender (at this moment for that mortgage size) drops off below 25k. That might well not be the case tomorrow or when it's time for you to go ahead.

You can do a similar comparison using the MSE mortgage finder and sorting by 'MSE total cost assessment'..

Thanks for that.

dimbo61

Why not look at an Offset mortgage for say £50K and keep a good offset savings pot to reduce the interest you have to pay