Top Mortgage Loophole

TKPeters

Yep Just had the email

Thank you for your enquiry.

Unfortunately funds on this product are now exhausted. However, if you are still interested in arranging a mortgage with the Society - please check our Website for details of mortgage products still available on https://www.theloughborough.co.uk

astep70uk

OK . . .this is a stupid question as I know the offer has been withdrawn, but I just want to know if it would have been worth my while? Here are my figures:

Current mortgage - £48000
House value - £160000

Monthly repayments at 4.8% are £374.00 with 20 years to run and no tie in.

I'd be grateful if somebody could work this ouyt for me as I've had real problems.

Thanks

michaels

So has anyone doe a scan of all the cashback mortgages on offer at the moment to see if any others are offering a market leading rate when the cashback and tie-ins are considered together?

Scr00ge

astep70uk wrote:

OK . . .this is a stupid question as I know the offer has been withdrawn, but I just want to know if it would have been worth my while? Here are my figures:

Current mortgage - £48000
House value - £160000

Monthly repayments at 4.8% are £374.00 with 20 years to run and no tie in.

I'd be grateful if somebody could work this ouyt for me as I've had real problems.

Thanks

Yes, this certainly would have been worth it. You could have remortgaged at £143,000, and got £153,000. Then paid off the current mortgage with £48,000; leaving you with £105,000 cash, and a mortgage of £143,000 with the L'borough.

You could then either pay all the cash back into the mortgage (best option), leaving you with a mortgage of £38,000 at a rate of 6.1% for 3 years.

Or you could just repay £95,000 of the mortgage, leaving it at £50,000, and keep the £10,000 cash.

Or do exactly the same as Martin's original example and keep £6,500 cash, whilst using the remaining £3,500 to help pay off the £50,000 mortgage (having the effect of lowering the 6.1% interest rate to 3.77% for 3 years).

YorkshireBoy

Stephen Peete, chief executive of the Loughborough BS said recently that, whilst they admitted they had made a mistake with this product offering, those applications received before the mortgage was withdrawn would be honoured.

He also said that they had only set aside £2m to fund this product.

So, did anyone get one of the 15 or so that they "gave away"?

http://money.independent.co.uk/property/homes/article311451.ece