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!
BTL mortgage product coming to an end. Best options for paying off lump sum.
Chelsea_Blue
Posts: 36 Forumite
Our current BTL five year 2.17% product is coming to an end 28th February with a balance of around 140k outstanding.
We are in a position to pay off 70k leaving a 70k balance and having spoken with our advisor who has told us, we will need to speak to our current lender, as we wish to reduce the balance by a large sum.
Not quite sure what is the best option for us, we can pay 10% penalty free before the product finishes reducing the balance to £126k.
Should we just drop off our current product, then make large redemption payment say, 1st March and then take out a new fixed term deal with them straight away. Obviously we will be paying SVR for a few days.
I haven’t spoken with our provider yet, but would like peoples thoughts on what are our best options could be, before I make the call.
Thanks in advance
We are in a position to pay off 70k leaving a 70k balance and having spoken with our advisor who has told us, we will need to speak to our current lender, as we wish to reduce the balance by a large sum.
Not quite sure what is the best option for us, we can pay 10% penalty free before the product finishes reducing the balance to £126k.
Should we just drop off our current product, then make large redemption payment say, 1st March and then take out a new fixed term deal with them straight away. Obviously we will be paying SVR for a few days.
I haven’t spoken with our provider yet, but would like peoples thoughts on what are our best options could be, before I make the call.
Thanks in advance
0
Comments
-
Your provider is?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Accord Mortgagesamnblog said:Your provider is?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards