Short time left on mortage

StephAshcroft

Hello lovely people!

My fixed rate comes to an end at the end of May and Natwest have said they won't offer me another mortgage because I only have a 2 years left, and they are going to put me on a SVR which is currently 7.74%.   Can you please advise if there is any reason why I would be turned down if I took a loan to cover my outstanding mortgage?  and would I be charged for an early settlement fee?  Thanks!  

Hoenir

There are no settlement fees when on the lenders SVR. You will however have to pay £150 (?) or so to have the lender discharge the mortgage deed registered against the property. 

Given the short period left. Could you overpay the mortgage at all to reduce the interest charges. 

tacpot12

Most lenders will have a minimum amout they will lend. Usually £25,000. 

How much is left on your mortgage? 

You could look to get a personal loan at a lower rate so that you can pay the mortgage off. 

StephAshcroft

Hoenir said:

There are no settlement fees when on the lenders SVR. You will however have to pay £150 (?) or so to have the lender discharge the mortgage deed registered against the property. 

Given the short period left. Could you overpay the mortgage at all to reduce the interest charges. 

Thanks - I have been overpaying the mortgage for the last couple of years. 

V3cash

I recently got a 0% Visa card which gave me £8000 which I used as a car loan, it allowed me to transfer to my bank account.
if you haven’t got much left on mortgage you could do that.
like others have said it depends how much is left. If it was 20k?

If you had partner/ spouse who had good credit you both could do it and cover it getting a 3.5% loan virtually.
There was a 3.5% charge for transfer.

i wouldn’t think you would be turned down as I’m assuming you have no loans already and good credit.
Do you have a 10% limit on overpayments?
another way to do it totally 0-% is to get a 0% spending card and save the money you would spend, paying it into a saving acount rather than card then pay off mortgage with those savings.Then 0% card then has debt on there instead, that would work if you had a long time to faff about but as you don’t the transfer card might work best if you don’t want to pay loan interest rates.
Barclaycard do a reasonably long one and you can check eligibility.
have you a spouse/ partner ? Who could do it to

if you can’t be doing with the hassle then
tesco is pretty good for loans and I’ve always overpaid those saving interest.
depends on what you will owe at the end of May?
I don’t mind faffing about to save interest but for others a simple loan suits them best but I’m a real Scrooge and if I can get it 0% I’ll jump all the hoops 😇

StephAshcroft

tacpot12 said:

Most lenders will have a minimum amout they will lend. Usually £25,000. 

How much is left on your mortgage? 

You could look to get a personal loan at a lower rate so that you can pay the mortgage off. 

I have less than £12,000 left.  

V3cash

StephAshcroft said:

tacpot12 said:

Most lenders will have a minimum amout they will lend. Usually £25,000. 

How much is left on your mortgage? 

You could look to get a personal loan at a lower rate so that you can pay the mortgage off. 

I have less than £12,000 left.  

Is it just you or could you share this with partner?
Will it be less by May?

StephAshcroft

V3cash said:

StephAshcroft said:

tacpot12 said:

Most lenders will have a minimum amout they will lend. Usually £25,000. 

How much is left on your mortgage? 

You could look to get a personal loan at a lower rate so that you can pay the mortgage off. 

I have less than £12,000 left.  

Is it just you or could you share this with partner?
Will it be less by 

Just me!!  It will be about that at the end of May 

V3cash

StephAshcroft said:

V3cash said:

StephAshcroft said:

tacpot12 said:

Most lenders will have a minimum amout they will lend. Usually £25,000. 

How much is left on your mortgage? 

You could look to get a personal loan at a lower rate so that you can pay the mortgage off. 

I have less than £12,000 left.  

Is it just you or could you share this with partner?
Will it be less by 

Just me!!  It will be about that i  May 

Tesco loans are about 6% at moment 
i would probably max out a 0% transfer card and get loan for rest but it depends what you can be bothered with.

GrumpyDil

You're under the limit to get a new mortgage. Personally I'd probably just keep paying the mortgage off as is. 

Petriix

It might well be better to remortgage to a different provider, borrowing £25k on a 1 year fix and sticking the difference in an ISA from which you could drip-feed a bunch of regular savers. You'd have to do some sums.