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Secured Loan v Remortgage
I need to raise £45,000. I have been offered either a remortgage or a secured loan and want to know which is the best one to proceed with.
I currently have a property with a mortgage of £135,000 (value £800,000) the rate for the mortgage is .44% above bank base on a flexible tracker for the term of the mortgage. currently about 14 years left to run.
So do i take the secured loan of £45,000 at 7.7% apr with 30 days penalty interest for early redemption (the loan is with "Firstplus" so is there anything i should look for in the agreement as they do not seem highly thought of on these boards) The term of the loan would be 10 years.
Or i have been offered a £180,000 remortgage at +1.9% above bank base. This has a £10k early redemtion penalty in the first three years. The term of the remortgage would be 14 years.
Just in case somebody knows another option for me i do have a good credit rating of 999/1000.
I would plan on finishing the loan early if possible in about 3 years. I have two investment properties with capital in them that would cover the loan but at the moment nothing is selling and i need the money within the next few weeks. So i thought about keeping hold of them for the time being and see if the market picks up and then sell one to clear the extra borrowing.
Any advice or recomendations?
I currently have a property with a mortgage of £135,000 (value £800,000) the rate for the mortgage is .44% above bank base on a flexible tracker for the term of the mortgage. currently about 14 years left to run.
So do i take the secured loan of £45,000 at 7.7% apr with 30 days penalty interest for early redemption (the loan is with "Firstplus" so is there anything i should look for in the agreement as they do not seem highly thought of on these boards) The term of the loan would be 10 years.
Or i have been offered a £180,000 remortgage at +1.9% above bank base. This has a £10k early redemtion penalty in the first three years. The term of the remortgage would be 14 years.
Just in case somebody knows another option for me i do have a good credit rating of 999/1000.
I would plan on finishing the loan early if possible in about 3 years. I have two investment properties with capital in them that would cover the loan but at the moment nothing is selling and i need the money within the next few weeks. So i thought about keeping hold of them for the time being and see if the market picks up and then sell one to clear the extra borrowing.
Any advice or recomendations?
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