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Loan to clear a mortgage

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Hi. I've a BTL mortgage, where the fixed rate has just ended and I will move onto 4.34% above base. On 230k my repayments will shoot up from £370 to £1500. I am starting to clear down the capital and should be able to reduce my loan to 20k. I still don't want to be repaying this against my current product (4.34+base). Are there any personal bank loans that will offer a much lower interest rate and allow overpayments without penalties? I don't want to fix again on a BTL, incurring arrangement fees and ERC. Thanks, Jerry

Comments

  • You'll struggle to find a loan for the purpose of paying off a mortgage.

    All loans allow overpayments but all will have up to a two month ERC. 
  • jerrypf said:
    Hi. I've a BTL mortgage, where the fixed rate has just ended and I will move onto 4.34% above base. On 230k my repayments will shoot up from £370 to £1500. I am starting to clear down the capital and should be able to reduce my loan to 20k. I still don't want to be repaying this against my current product (4.34+base). Are there any personal bank loans that will offer a much lower interest rate and allow overpayments without penalties? I don't want to fix again on a BTL, incurring arrangement fees and ERC. Thanks, Jerry
    Do you mean £200K rather than £20K..? 
  • It is highly unlikely that a personal loan will be given on a lower rate than a secured mortgage even a BTL. 
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  • Edi81
    Edi81 Posts: 1,501 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You need to remortgage to a “better” BTL mortgage. 
  • LunaLater
    LunaLater Posts: 140 Forumite
    100 Posts First Anniversary Name Dropper
    Unsecured borrowing tends to be at a higher rate than mortgages are, so I think you’ll struggle to find anything better than you have.
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