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Advice Required - Re-Mortgage
kossohead
Posts: 188 Forumite
Hi Guys,
Looking for some advice as not that clued up on mortgages..
My current mortgage ends in April with NatWest which was 3.39%.
Now looking to remortgage over 10 years.
My mortgage would be for 100k based on a 5 year fixed deal, I currently have £56k capital and interest and £44k interest only.
I want to borrow another £10k to pay for a garage conversion and clear a few debts,so would be looking to borrow £110k.
My property is valued around £260k with a LTV at 44%.
What are my options? Or what would you do?
I’ve heard someone mention equity in the property, take money out but not sure what it means.
Any advice would be welcomed.
Thanks !!!128077;
Looking for some advice as not that clued up on mortgages..
My current mortgage ends in April with NatWest which was 3.39%.
Now looking to remortgage over 10 years.
My mortgage would be for 100k based on a 5 year fixed deal, I currently have £56k capital and interest and £44k interest only.
I want to borrow another £10k to pay for a garage conversion and clear a few debts,so would be looking to borrow £110k.
My property is valued around £260k with a LTV at 44%.
What are my options? Or what would you do?
I’ve heard someone mention equity in the property, take money out but not sure what it means.
Any advice would be welcomed.
Thanks !!!128077;
0
Comments
-
Hi,
Do you have anything in place to cover the 44k interest only element of your mortgage?Space available for rent0 -
Peelerfart wrote: »Hi,
Do you have anything in place to cover the 44k interest only element of your mortgage?
Hi, I have an endowment which is £93pm, 10 years left on term from 25 years.0 -
What is your annual income and how old are you?
Does that 10 years take you up to retirement and would you be able to make the monthly repayments on a larger mortgage.
Have you looked at what deals are available with your current lender or elsewhere?
I personally don't think using the equity in your property to repay debts is a good idea. How did you incur the debts and are you finding it a struggle to make ends meet? If so, upping your mortgage payments to do home improvements and repay debts does not sound a good idea if you are already spending more than your income.
If you are adamant that this is something you want to do then a secured loan is an option depending on your credit history and existing debt, your income and the lenders affordability criteria. Having a low LTV will be a plus in your favour.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.
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Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php0 -
I'm 46 and my annual income is 30k.
My current lender are offering me 2.44%, fee £995 or 2.97%, £0 fee based on a 5 year term.
I have debts of only 6k but would like to clear them off, I also want to covert our garage into an extra bedroom which requires around another £6k.
My current rate at 3.39% ends in May.
Any advice on what should I do?
Thanks0
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