Loan to replace mortgage?

jacklia

Our mortgage balance is sitting at about £28,000 with just over 9 years left to run (house is worth about £90k). We're currently with Northern Rock and will be moving from fixed rate to their standard variable rate on 1st Sept 2008. We're reluctant to remortgage with another provider due to fees/survey costs/etc. We don't want to extend the term if we don't have to.

I'm sure I read somewhere about there being a point where it was feasible to take out a personal loan to clear the mortgage? Is this something we can look at yet or should we just stick with Northern Rock for the time being?

Any advice would be appreciated.

Thanks

Jackie

Tiddler_2

most unsecured loans have a maximum amount of £25k as far as i am aware (happy to be corrected on this point) so not something you could do at the moment. Though I suppose you could take 2 loans out to cover the amount needed to pay off the mortgage in full

Is it not worth looking at what fee free deals are available, though with a comparatively small debt there won't be any massive savings on payments

dwsjarcmcd

Personally I would sit on the Rock's SVR. Tiddler is right about the £25k max for personal loans and I doubt that with the amount you want, I suspect you won't get the best rates (which are about 6.9%) anyway even if you had the best credit record going.