NEW first charge mortgage solution to Repay a tax bill with a standard remortgage product.
I have been in the mortgage business for more years than I care to recount and first charge mortgage Lenders have always drew a line when tax bill repayment was subject of debt consolidation – well that position has changed with three Lenders entering the fray that allow a Remortgage to repay a tax bill.
Remortgages are usually more cost effective than the tradition borrowing methods of repaying a tax bill such as, bridging finance, term loans, credit cards and second charge mortgages. Remortgages are cheaper as they offer the Lender a greater degree of security.
Please be reminded Remortgages are secured against your property and may result in repossession if you fail to keep up your repayments.
I should stress that Niche Advice arranges mortgages and are not tax advisors. Separate independent legal and tax advice is recommended. A Remortgage to repay a tax bill may not always be the right option and at Niche Advice we also have access to secured loans which can also be a good alternative.
Example Product Rate and Fees- Remortgage product to repay a tax bill
[ezcol_1fifth]Initial Rate: 3.84%[/ezcol_1fifth] [ezcol_1fifth]Subsequent: 5.49%[/ezcol_1fifth] [ezcol_3fifth_end]The overall cost for comparison 5.4% APRC[/ezcol_3fifth_end]
The total amount you must pay back, including the amount borrowed is £434,141.2
Product Features: Remortgage to consolidate a tax bill
| Type and initial benefit period | Fixed for 2 years |
| Minimum deposit / equity: | 20% |
| Valuation fee | £520 |
| Booking fee | £0 |
| Lender arrangement | £995 |
| Telegraphic transfer / CHAPS fee | £0 |
| Legal fee | £126 |
| Early repayment charge | 3/2% of the amount repaid in the fixed period |
For more information on Remortgage to repay a tax bill please call complete the enquiry form on this page or call the number below.
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage. Niche Advice arranges mortgages and is not a Lender or Tax Advisor.
Important Information
Residential and Buy to Let Mortgages
Rates current as at 21/04/17 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
