Offset Mortgage 2nd Charge

SBM_2

Hi there this is probally a long shot, but you never know.

I am looking for an offset mortgage, for around £10,000 for 5 - 10 yrs.

This in it's self is no problem, but i have already have a Mortgage which i do not what to alter, So the offset mortgage would be on a second charge basis.

i am currently with Ybs, but my current mortgage is on a 10yrs fixed Term.

They do offer offset mortgages, and will give me a second charge, but it would have to match the first product, i.e Fixed.

Can anyone help.

thankyou.

MarkyMarkD

I don't think YBS will actually give you a loan on a second charge basis - they don't need to as they have the first charge in any case!

I don't think any decent lender will give you what you want, either. The only sensible way to get a further loan is from your original lender, or by remortgaging the whole thing.

We took out a further loan from YBS and could have it on any product we liked - so I'm not sure why you are being told you have to have it on the same basis as the main loan.

That said, I can't see why you would be allowed an offset product for the further loan - or, indeed, why you think you want one. On a trivial mortgage like £10k offsetting isn't going to make any meaningful difference. I would just get a further advance on a flexible product which allows repayments at will. Offset is an over-blown feature IMHO.

bunking_off

On a "trivial" amount like £10k I'd question whether it's worth going down the mortgage route. Many unsecured loans seem to be available at round about the 6% mark...by the time you've factored in valuation/setup fees, I doubt there'd be much in it.

MarkyMarkD

Bunking's quite right, if you can afford the repayments over the shorter term. I kind of assumed you wanted to borrow the £10k for the whole of the 10 year period and then repay it all - but if it's in instalments, a personal loan is a sensible choice given your circs.