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  • FIRST POST
    • kossohead
    • By kossohead 2nd Mar 18, 10:08 PM
    • 183Posts
    • 13Thanks
    kossohead
    Advice Required - Re-Mortgage
    • #1
    • 2nd Mar 18, 10:08 PM
    Advice Required - Re-Mortgage 2nd Mar 18 at 10:08 PM
    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?

    Iíve heard someone mention equity in the property, take money out but not sure what it means.
    Any advice would be welcomed.
    Thanks !!!128077;
Page 1
    • Peelerfart
    • By Peelerfart 2nd Mar 18, 10:34 PM
    • 1,913 Posts
    • 1,671 Thanks
    Peelerfart
    • #2
    • 2nd Mar 18, 10:34 PM
    • #2
    • 2nd Mar 18, 10:34 PM
    Hi,

    Do you have anything in place to cover the 44k interest only element of your mortgage?
    Space available for rent
    • kossohead
    • By kossohead 2nd Mar 18, 11:33 PM
    • 183 Posts
    • 13 Thanks
    kossohead
    • #3
    • 2nd Mar 18, 11:33 PM
    • #3
    • 2nd Mar 18, 11:33 PM
    Hi,

    Do you have anything in place to cover the 44k interest only element of your mortgage?
    Originally posted by Peelerfart
    Hi, I have an endowment which is £93pm, 10 years left on term from 25 years.
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Mar 18, 11:50 AM
    • 6,407 Posts
    • 13,188 Thanks
    enthusiasticsaver
    • #4
    • 3rd Mar 18, 11:50 AM
    • #4
    • 3rd Mar 18, 11:50 AM
    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.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • kossohead
    • By kossohead 6th Mar 18, 10:15 PM
    • 183 Posts
    • 13 Thanks
    kossohead
    • #5
    • 6th Mar 18, 10:15 PM
    • #5
    • 6th Mar 18, 10:15 PM
    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?

    Thanks
    Last edited by kossohead; 06-03-2018 at 10:17 PM.
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