Remortgage with only 2 years left

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  • dcfc67
    dcfc67 Posts: 399 Forumite
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    What about taking out a personal loan to clear the mortgage

    Sainsburys Bank £10000 over 24 months is £428 a month
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    dcfc67 wrote: »
    What about taking out a personal loan to clear the mortgage

    Sainsburys Bank £10000 over 24 months is £428 a month

    If they can get 2.59%
  • puddy28cat
    puddy28cat Posts: 15 Forumite
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    I was unable to get a personal loan to repay me mortgage as apparently this is not allowed! Therefore I decided to stay where I was.
    I received my new monthly payment letter the other day to say my payments where going from £480 per month to £505 per month.
    Now as the internet rate is only changing from 3.09% to 3.99% I cannot see how this can possibly be correct. I phoned the Halifax today and they insist this is correct. This is dispite the fact I have it in writing when I took out this mortgage in 2014 that my payments would increase to just £485.
    I have asked for a breakdown of their calculations.
    My question is, I can afford to pay the higher amount and if I do so, at the end of the mortgage will I have been robbed by the Halifax by over £500 or will I actually find it all works out in the end and my mortgage will be finished sooner?
  • robatwork
    robatwork Posts: 7,090 Forumite
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    It has been mentioned on here before that the bank giving the loan doesn't care what you do with it once they have paid it into your account. For example you may want it for house improvements, but suddenly get an illness that you elect to pay for and get specialised surgery abroad out of that money. Nobody would care.

    Of course I am not for one minute suggesting you tell the bank you are taking the loan for anything other than the true reason.
  • middleclassbutpoor
    middleclassbutpoor Posts: 774 Forumite
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    robatwork wrote: »
    It has been mentioned on here before that the bank giving the loan doesn't care what you do with it once they have paid it into your account. For example you may want it for house improvements, but suddenly get an illness that you elect to pay for and get specialised surgery abroad out of that money. Nobody would care.

    Of course I am not for one minute suggesting you tell the bank you are taking the loan for anything other than the true reason.

    What are you suggesting then? :rotfl:
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    On a small mortgage as you are nearing the end I would stick with SVR and overpay to get rid of it asap.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    puddy28cat wrote: »
    I was unable to get a personal loan to repay me mortgage as apparently this is not allowed! Therefore I decided to stay where I was.
    I received my new monthly payment letter the other day to say my payments where going from £480 per month to £505 per month.
    Now as the internet rate is only changing from 3.09% to 3.99% I cannot see how this can possibly be correct. I phoned the Halifax today and they insist this is correct. This is dispite the fact I have it in writing when I took out this mortgage in 2014 that my payments would increase to just £485.
    I have asked for a breakdown of their calculations.
    My question is, I can afford to pay the higher amount and if I do so, at the end of the mortgage will I have been robbed by the Halifax by over £500 or will I actually find it all works out in the end and my mortgage will be finished sooner?

    What balance & payments to the £ along with terms to the month were on the previous and this schedule


    if you were paying £480 on 3.09% and it is now £505 that would be around a £58k mortgage over 12years which we know it is not.


    if you were paying £480 on £10650 @ 3.09% in May
    that was around 1 year 11 months full term

    did you round to £480? 1y 11m is £477.50

    at 3.99% that would have been £481.75

    2 months later would have a balance of around £9750

    over 1y 9m 3.09% £477.50, 3.99% £481.50

    over 1y 8m 3.09% £500.79, 3.99% £504.70


    I suspect they have lost a month off the term to get the £505 figure
  • robatwork
    robatwork Posts: 7,090 Forumite
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    middleclassbutpoor wrote: »
    What are you suggesting then? :rotfl:

    I'm suggesting I don't get banned!
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