Any financial advisors here?

[boognish76]

I need �10,000. I was going to get out a personal loan and have been shopping around for a good rate. However, I have a flexible mortgage and it's occured to me that I could borrow the money 'from' my mortgage and simply add what I would have paid in monthly loan repayments to my mortgage payment, thus paying off the loan in the same time period at a much lower rate of interest. It seems so simple - am I missing something?

[Miss Zippy]

My understanding of flexible mortgages is that you must have made overpayments before you can then 'borrow' the money back, i.e. in your case you need to have paid �10,000 over and above your usual mortgage repayments. There are other ways to borrow on your mortgage though; you could ask for an 'equity release' (provided, of course, you have the equity in your home to cover the amount you wish to borrow) or obtain a re-mortgage, adding the �10,000 to this. Borrowing this way is still cheaper in the short term than taking out a loan, though you probably pay more in the long run as the term of the repayments are longer (e.g. 20/25 years etc).

[darth vader]

Partially true.
With Equity Release, or 2nd mortgages you will save money as the interest rate will be lower. What you must then do is a) make sure you have a flexible mortgage, so that b) you can pay back extra on top of the requested payment each month, to pay the loan back earlier

[darth vader]

Sorry i'm full of cold and just realised you said all that already, so the answer is no you haven't missed something and it's as simple as that (my financial advisor has suggested i shift all current debts onto the mortgage for the same reasons)

[FTVS]

Also remember that you can get flexible personal loans and that the real beauty of a personal loan is that it is not secured on you house. I have personal loan and a mortgage as I jointly own the property with my partner but the loan is for me.

[quattro]

I wanted to get a remortgage to finish off all the credit cards and loans I had I shopped around and finally went to my own lender the TSB which was one of the higher rates anyway not really expecting a good deal . The bank offered me a 5% cash gift if I took out the remortgage with them this worked out at �1,250 so I decided to give it a try I don't know wether lenders are still doing these incentives but with the way house prices are going it seems like a good bet . It certainly got me out of a hole at the time and it has tought me that I can't have any more credit cards again but I still have the �1,250 in my savings after 5years