We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
Wanting to take out additional lending on very low remaining mortgage issue
Plant1980
Posts: 30 Forumite
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
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
0
Comments
-
secured loan maybe a better ideaDon'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.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards