Any mortgage experts around?
Discussion
Hi folks,
I was speaking to my better half today about finances, and we had a discussion about our mortgage. We currently have an endowment (had it for 10 years), it's not performing that well to be honest. We are looking to change this to a repayment, but also have another issue where we would like to free up some of the capital from our house if we could?
Basically:
We do obviously plan on speaking to a mortgage advisor, but in the meantime wondered if any of you could give us a bit more info before we approach an advisor? Also, not sure if you need to know (with the laws being different up here) but we live in Scotland.
Any help would be fantastic!
Thanks in advance,
Neil
I was speaking to my better half today about finances, and we had a discussion about our mortgage. We currently have an endowment (had it for 10 years), it's not performing that well to be honest. We are looking to change this to a repayment, but also have another issue where we would like to free up some of the capital from our house if we could?
Basically:
- we have a mortgage of £74k, house is valued at £150k+
- we would like to free up say £20k from the value of the house for non-house reasons. We had a baby recently, and need some extra cash to keep us going while Mrs 4hero is on maternity leave, and pay off a couple of credit cards
- we are looking for the best type of repayment mortgage, there are so many and we are a bit confused?
We do obviously plan on speaking to a mortgage advisor, but in the meantime wondered if any of you could give us a bit more info before we approach an advisor? Also, not sure if you need to know (with the laws being different up here) but we live in Scotland.
Any help would be fantastic!
Thanks in advance,
Neil
Hi Neil
As a general rule, you should be able to change your mortgage to a repayment type at either little or no admin cost with your existing lender. (Apart from the increased monthly payments switching from interest only to repayment type).
As to borrowing an additional £20k for non house type purposes, that could be done at the same time as changing to repayment, again with your existing lender. But it will depend on your income and outgoings.
Regarding re-mortgaging to obtain the extra - it is an option but all depends on what your existing lender can offer you compared to what the rest of the market has on offer.
Which ever route you consider, it will all depend on your income and outgoings. For example, when your wife gives up work will your income be sufficient to support the family without the need of the additional 20k?
Ive sent you a PM if you want a no-obligation chat about it.
Regards
Tom
Well I tried, except you dont permit emails! Message me if you like.
As a general rule, you should be able to change your mortgage to a repayment type at either little or no admin cost with your existing lender. (Apart from the increased monthly payments switching from interest only to repayment type).
As to borrowing an additional £20k for non house type purposes, that could be done at the same time as changing to repayment, again with your existing lender. But it will depend on your income and outgoings.
Regarding re-mortgaging to obtain the extra - it is an option but all depends on what your existing lender can offer you compared to what the rest of the market has on offer.
Which ever route you consider, it will all depend on your income and outgoings. For example, when your wife gives up work will your income be sufficient to support the family without the need of the additional 20k?
Ive sent you a PM if you want a no-obligation chat about it.
Regards
Tom
Well I tried, except you dont permit emails! Message me if you like.
Edited by TomBoo on Wednesday 3rd March 08:50
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