1 mortgage - 2 sets of interest rates - clearing 1 poss?
Discussion
Have a BTL mortgage (2% above base tracker for life 
). Few years later I levered it for a further advance of £68k on a Lifetime LIBOR +4.25% so a far less advantageous rate. Is its possible to put a lower interest rate second charge on the property (loads of equity) in order to get funds to pay off the pricy second loan only? Cheers.
). Few years later I levered it for a further advance of £68k on a Lifetime LIBOR +4.25% so a far less advantageous rate. Is its possible to put a lower interest rate second charge on the property (loads of equity) in order to get funds to pay off the pricy second loan only? Cheers.
JulianPH said:
(which may still be a worthwhile move overall).
Indeed......it depends on the size of the original balance.........no point clinging on to a low rate for a original small balance if you then have £68k on 5%+...............it's the cost of the overall debt that's key..............Sarnie said:
Indeed......it depends on the size of the original balance.........no point clinging on to a low rate for a original small balance if you then have £68k on 5%+...............it's the cost of the overall debt that's key..............
And how is your McLaren treating you, Sir Sarnie! 
Sarnie said:
Not without redeeming the initial balance too.
Damn it but guess I knew it. Would be mad to ditch 250k at 2% to save 60k at 5%. Feel free to PM Sarnie if there are any legs in this but I think I am likely a very lucky boy to be on the base rate tracker deal of the (last) century!Hope the DB is as reliable as my slightly longer version of it Julian
Ken Figenus said:
Damn it but guess I knew it. Would be mad to ditch 250k at 2% to save 60k at 5%. Feel free to PM Sarnie if there are any legs in this but I think I am likely a very lucky boy to be on the base rate tracker deal of the (last) century!
Hope the DB is as reliable as my slightly longer version of it Julian
It has been incredibly reliable mate, but just had an eye watering service bill! I forgot you had the Rapide, fantastic cars! Hope the DB is as reliable as my slightly longer version of it Julian
Your overall rate across both account is around 2.7%, so I am guessing hard to beat for a BTL mortgage these days, but Liam will certainly be able to let you know better than I could.
Cheers
cupraben said:
Depending on the lender you may be able to switch just the further advance on to a different product, as they are separate sub accounts they can be dealt with individually
If he's on a Libor rate already, the current lender isn't going to have any better rates to choose from........Ken Figenus said:
Hope the DB is as reliable as my slightly longer version of it Julian
Swiss Toni: It's all about todgers. These aren't cars, they're todgers.Paul: But I thought you said they were dreams?
Swiss Toni: You ever dream about todgers, Paul?
Paul: No.
Swiss Toni: No, no. Neither do I, obviously. When you're selling a car to man, it all comes down to who's got the biggest todger. You have to make him think that his is bigger. But, in order to sell it to him, you have to know that yours is the biggest. You have to keep telling yourself, "I've got the biggest todger in the world".
Paul: I've got the biggest todger in the world.
Swiss Toni: It's not as big as mine, Paul. It's not as big as mine.
rockin said:
Swiss Toni: It's all about todgers. These aren't cars, they're todgers.
Paul: But I thought you said they were dreams?
Swiss Toni: You ever dream about todgers, Paul?
Paul: No.
Swiss Toni: No, no. Neither do I, obviously. When you're selling a car to man, it all comes down to who's got the biggest todger. You have to make him think that his is bigger. But, in order to sell it to him, you have to know that yours is the biggest. You have to keep telling yourself, "I've got the biggest todger in the world".
Paul: I've got the biggest todger in the world.
Swiss Toni: It's not as big as mine, Paul. It's not as big as mine.
That's a bit harsh Steve, everyone knows my todger is tiny.Paul: But I thought you said they were dreams?
Swiss Toni: You ever dream about todgers, Paul?
Paul: No.
Swiss Toni: No, no. Neither do I, obviously. When you're selling a car to man, it all comes down to who's got the biggest todger. You have to make him think that his is bigger. But, in order to sell it to him, you have to know that yours is the biggest. You have to keep telling yourself, "I've got the biggest todger in the world".
Paul: I've got the biggest todger in the world.
Swiss Toni: It's not as big as mine, Paul. It's not as big as mine.
How is your Corvette and Porsche treating you BTW!
LOL - 331mm in the wheelbase is nothing to boast about for some of us, but quite useful if you are a 6 year old in the back seats and have actual legs
Now I just got a response from the mortgage company "We can confirm that you will be able to pay off your further advance and keep your main account open". Now where to source those funds at a better rate... LTV sub 50% and thus favourable
Now I just got a response from the mortgage company "We can confirm that you will be able to pay off your further advance and keep your main account open". Now where to source those funds at a better rate... LTV sub 50% and thus favourable
Ken Figenus said:
LOL - 331mm in the wheelbase is nothing to boast about for some of us, but quite useful if you are a 6 year old in the back seats and have actual legs
Now I just got a response from the mortgage company "We can confirm that you will be able to pay off your further advance and keep your main account open". Now where to source those funds at a better rate... LTV sub 50% and thus favourable
No one said you couldn't pay it off, just that you couldn't get another mortgage from another lender to better the rate..........Now I just got a response from the mortgage company "We can confirm that you will be able to pay off your further advance and keep your main account open". Now where to source those funds at a better rate... LTV sub 50% and thus favourable
To be fair I understood you said above that I'd have to redeem the original balance too to do this but it looks like I can just clear the higher rate further advance and leave that very beneficial tracker main loan in place. Nice surprise in principle! You don't reckon I can get a loan at a better rate than 5% though and I just found "Your loan with Paragon contains a restriction which prevents changes to the charges registered against your property without our consent". Could draw-down elsewhere to pay this one off but its all getting a bit complex! Ho hum!
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