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Wanting to take out additional lending on very low remaining mortgage issue

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Hi all, this is probably an easy answer but I will ask anyway.

We owe 9k on our mortgage at 1.79% with 5% ERC. (1yr 10months left)

We had a quote for an additional 60k borrowing for a small extension but they quoted 5.5% for 5yr fix.

My thoughts were to pay 10% overpayment on the 9k and then remortgage with Barclays @ 4.36% 

The ERC of £400 would be offset by the lower rate savings over the term.

I couldn't think of a better way to gain the extra cash.

Apart from waiting for a slightly lower rate IF lenders reduce their rates base on BoE recent base rate reduction.

Any pointers would be appreciated.

Andy

Comments

  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    secured loan maybe a better idea
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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