Sub accounts less than £25K outstanding....
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paulfoel
Posts: 5,819 Forumite
Current mortgage - £100K. £80K of that is on an excellent lifetime tracker rate. 13 years or so left.
I did have special rate for £25K but thats ending soon. Problem is because balance on the sub accounts are less than £25K I can't switch this amount to its going back to SVR 4.25%.
I was considering getting a 10 year loan for £20K to pay this part off. Would this be good idea? Might tie up a huge chunk of my personal borrowing...
Other option, of course, is to add £5K to borrowing to enable to get a good deal.....
BUT I guess at some point in the future its going to go back under £25K again!
I did have special rate for £25K but thats ending soon. Problem is because balance on the sub accounts are less than £25K I can't switch this amount to its going back to SVR 4.25%.
I was considering getting a 10 year loan for £20K to pay this part off. Would this be good idea? Might tie up a huge chunk of my personal borrowing...
Other option, of course, is to add £5K to borrowing to enable to get a good deal.....
BUT I guess at some point in the future its going to go back under £25K again!
Cymru am Byth !!! :j:j:j
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Comments
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Borrow back up to 25k and overpay a lot over 5 years by then you can probably convert most to 0% through purchase CC.
Which lender? decent ones don't have such a high restriction.0 -
getmore4less wrote: »Borrow back up to 25k and overpay a lot over 5 years by then you can probably convert most to 0% through purchase CC.
Which lender? decent ones don't have such a high restriction.
Yeh might do this. If I leave 21K on SVR it'll cost me £330 a year more in interest. If I borrow 25K for 5 years on a fixed rate it'll cost me £100 a year more for the £4K extra.
Worth doing.
Only problem is (and I did this before) its extra borrowing. I remember all the hoops/forms etc for a few extra K.
Lender is RBSCymru am Byth !!! :j:j:j0 -
Ah. Minimum extra borrowing is £10K. So I'd have to borrow £31K so maybe not so worth it.
Then again stick the £10K in a savings account and make overpayments every year as allowed (10%?) it may still be worth it.
Spoke to RBS and they said they were revising this £25K down to £10K.
Completely nuts that you can end up stuck with a portion of your mortgage on SVR and its more cost effective to borrow more.Cymru am Byth !!! :j:j:j0 -
There are lenders who will do a remortgage for less than 25k, I've just made a quick call and got you a list whilst making a coffee.
Barclays, Coventry Building Society, Halifax, Leeds Building Society, Principality Building Society, Skipton Building Society, Santander, Virgin Money.
I am not saying you fit the criteria of these lenders, just felt you were in a position where you could benefit from a starting point if you are doing your own research.
If you want a broker to do the research, you will most likely have to pay a fee to supplement the commission from the mortgage lender, as its likely to be nil or virtually nothing for such a small loan amount.
Good luck.
Ps if you are interested in overpayments, read the lending criteria of each mortgage on the lenders website or do a live chat with them,
MMI 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.0 -
Thanks but I dont want to lose the cracking lifetime tracker deal (base+1.1%) that I've got on the otehr £88K of my mortgage.Cymru am Byth !!! :j:j:j0
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