Loan to clear a mortgage 30 January at 11:26AM in Loans 5 replies 583 views

jerrypf

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

MorningcoffeeIV

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. 

FreeFallerSaver

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..? 

enthusiasticsaver

It is highly unlikely that a personal loan will be given on a lower rate than a secured mortgage even a BTL. 

Edi81

You need to remortgage to a “better” BTL mortgage. 

LunaLater

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.