Remortgage Advice

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Sarah46
Sarah46 Posts: 4 Newbie
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in Mortgages & endowments
Only have @ £17,500 left with 3 years but on SVR 4.99%. Is it worth me remortgaging to better rate as I see the admin/set up fees are high & I would struggle to find that initial outlay?

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  • ACG
    ACG Posts: 23,728 Forumite
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    Can you switch products with your current lender?
    On a £17k Mortgage it would be better to go with a product with no fees.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Sarah46
    Sarah46 Posts: 4 Newbie
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    edited 21 November 2018 at 4:39PM
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    I am not sure, I don't understand them that well so wouldn't know what to ask for? I've just checked & as I have less than 51/2 years left I cannot change the deal
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
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    there are other lenders that would accept a mortgage of 5 years with less than 17000 on it. I can only think of one or two. ACG is correct you would need a fee free deal on a better rate to make the swap worthwhile.

    Are you in a position to overpay the mortgage to get it paid off faster?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Sarah46
    Sarah46 Posts: 4 Newbie
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    Not at the moment re overpayment. This is why I'm not sure what I'm looking for. Am wondering whether it's worth getting a loan for say £15K to pay it off and then just pay the loan off?
  • muhandis
    muhandis Posts: 994 Forumite
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    I don't think banks accept "paying off mortgage" as an acceptable reason for taking out a personal loan.

    Disregarding the above, if you do get a personal loan at a rate low enough to make the effort worthwhile, nothing stops you from using it to pay off your mortgage.

    If you get a personal loan at (say) 3.5%, that would potentially save you about £750 of interest over 3 years on £17,500.
    Sarah46 wrote: »
    Not at the moment re overpayment. This is why I'm not sure what I'm looking for. Am wondering whether it's worth getting a loan for say £15K to pay it off and then just pay the loan off?
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
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    You need to look for a mortgage product where the rate is lower, there are no fees to swap and ideally get free legals too. Most lenders have a fee free option, the rates are higher than the products with fees built in as they have to make some money. Here is a list of lenders who are happy to lend under £25k. You'd have to speak to them individually to see if they were OK with the five year term though.



    Barclays
    Coventry Building Society
    Halifax
    Leeds Building Society
    Principality
    Skipton Building Society
    Santander – specific products
    Virgin
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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