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