Adding to joint mortgage in one name only
Discussion
SWMBO needs a loan for a car.
Cheapest way to get a loan (in the short term) could be to up the mortgage.
This is currently in joint names.
Can you get an additional advance in one name only on a joint mortgage?
I'm not keen to put it in both names as I suspect it will then be me that ends up trying to pay it off over the next 5 years.
Indeed.
Cheapest way to get a loan (in the short term) could be to up the mortgage.
This is currently in joint names.
Can you get an additional advance in one name only on a joint mortgage?
I'm not keen to put it in both names as I suspect it will then be me that ends up trying to pay it off over the next 5 years.
Indeed.
Rubbish advice!
If you have ample equity, then using your house is the cheapest way to buy a new car.
Why pay 8%+ on a loan, car finance etc when you can borrow against your house at a much cheaper rate.
Just overpay to the amount a loan over 5 years would have cost you, and you will clear the extra borrowing in under 5 years.
If you have little equity, then I wouldn't advise the above as it may cause problems should you wish to remortgage to a lower rate later on.
What rate is the top up available at, and with what (if any) set up costs, and how much would you be looking to borrow?
Example : I am with Abbey, they sent me a letter offering further borrowing but with a £500 admin charge. I was thinking of a small advance, and to pay the loan off within a couple of years. The £500 admin charge meant what should be a cheap borrowing made it expensive.
Example 2 : My cousin has a Woolwich mortgage, and to arrange a further borrowing facility cost him £95. This was of course worthwhile as he had a lot of equity so no risk for the future.
All of the above is opinion of course, not actual advice offered as I don't know your individual circumstances (I am a mortgage broker).
If you have ample equity, then using your house is the cheapest way to buy a new car.
Why pay 8%+ on a loan, car finance etc when you can borrow against your house at a much cheaper rate.
Just overpay to the amount a loan over 5 years would have cost you, and you will clear the extra borrowing in under 5 years.
If you have little equity, then I wouldn't advise the above as it may cause problems should you wish to remortgage to a lower rate later on.
What rate is the top up available at, and with what (if any) set up costs, and how much would you be looking to borrow?
Example : I am with Abbey, they sent me a letter offering further borrowing but with a £500 admin charge. I was thinking of a small advance, and to pay the loan off within a couple of years. The £500 admin charge meant what should be a cheap borrowing made it expensive.
Example 2 : My cousin has a Woolwich mortgage, and to arrange a further borrowing facility cost him £95. This was of course worthwhile as he had a lot of equity so no risk for the future.
All of the above is opinion of course, not actual advice offered as I don't know your individual circumstances (I am a mortgage broker).
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