increase mortgage to buy dream car?
Discussion
pfoster said:
Done this, and couldn't agree more that worth doing, with 2 pieces of advice:
1. Don't expect to make a profit. I bought a 550 Maranello from Europe last March in the hope of keeping it a year and if lucky get out of it without costing me anything (just had full cambelt service etc at the time of purchase so no expected maintenance), and enjoyed the road trip along the route napolean etc and thrill of first Ferrari!
2. Choose the car very carefully, go with head not heart. Heart would have gone for F430, head said 550 first F355 second.
As it turned out I sold it a month ago to wbac.com for double what I paid, and now have a £15/month mortgage on the offset plus equity sat there to buy anything else I fancy at 2% interest. Thanks to brexit stupidity may never be able to repeat it, so glad I did when had a sniff of an opportunity. Good luck all.
I am assuming the 550 was LHD ? was it easy to sell to WBAC ? 1. Don't expect to make a profit. I bought a 550 Maranello from Europe last March in the hope of keeping it a year and if lucky get out of it without costing me anything (just had full cambelt service etc at the time of purchase so no expected maintenance), and enjoyed the road trip along the route napolean etc and thrill of first Ferrari!
2. Choose the car very carefully, go with head not heart. Heart would have gone for F430, head said 550 first F355 second.
As it turned out I sold it a month ago to wbac.com for double what I paid, and now have a £15/month mortgage on the offset plus equity sat there to buy anything else I fancy at 2% interest. Thanks to brexit stupidity may never be able to repeat it, so glad I did when had a sniff of an opportunity. Good luck all.
I ask as I am about to sell my LHD 550
Phib
Sorry to bring up an old thread, I'm thinking of doing this as I'm due to remortgage soon as my fixed rate is ending. If I ask for an extra £20k does it simply get added to the existing loan at the same rate or will they start messing around having two accounts at different rates. I've been overpaying and will continue to do, I'm only 25% ltv and can't think of a better way to finance a new car. I've been looking at Coventry bs and they have 5 year fixes at 1.99% with no fee, I'll overpay the £20k well before the fixed period ends.
Casa1862 said:
Sorry to bring up an old thread, I'm thinking of doing this as I'm due to remortgage soon as my fixed rate is ending. If I ask for an extra £20k does it simply get added to the existing loan at the same rate or will they start messing around having two accounts at different rates. I've been overpaying and will continue to do, I'm only 25% ltv and can't think of a better way to finance a new car. I've been looking at Coventry bs and they have 5 year fixes at 1.99% with no fee, I'll overpay the £20k well before the fixed period ends.
Due to moving house and financing an extension, we currently have three different parts to our mortgage all at different rates, so I'd imagine that if you borrow and extra 20k it will be at whatever the rate is at the time, i.e. 1.99%.If you are borrowing additional funds, yes you have to select the option you want but presumably you'd want the same option for the house as you would for the additional money. It's worth noting that although this may seem like you have to pay 2 lots of fees, HSBC only charged one fee for both so it's effectively the same as borrowing the combined amount in one go.
xRIEx said:
Yep, I've done it several times. My mortgage is on a very low rate so I can borrow extra on the mortgage to put in a savings account and profit (in a small way) on the interest. Pay close attention to APRs, not flat rates. Do you have savings and is that AER higher or lower than your mortgage APR? If AER on your savings is lower than APR on your mortgage, use that up first. Would you be borrowing to the hilt? If you have an emergency and need to lay your hands on a few grand, do you have something to cover that? (Whether savings, or able to get credit on mortgage, loan or credit card.)
Bit OT but I did this with a student loan. Worked out the figures and I'd make a fair bit by investing in an ISA, got my parents to sign all the parts of the form they needed to but giving them the reasons why it would make me money. All of the money was spent in the pubs and clubs around Edinburgh within a few months!!I'm only a few years into my mortgage, it might be a cheap way to borrow but it's a figure I'd much prefer to get smaller very quickly instead of having a dream car on the driveway. Re-mortgaging the other week they showed me the figures if the interest rates went back up to 10% and it was a seriously large jump, payments almost doubled. Although that looks very unlikely there is a lot of risk in such a large debt.
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