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reducing mortgage?

Aim2Please · 2005-06-15 22:40:40

Hi all, I was wondering if a credit union loan would be a good way to reduce a mortgage loan? I need to reduce my loan to value ratio as I am considering the purchase of another property. My LTV is currently 84% and it needs to be under 80% to borrow more and to be able to release any equity. I hope to reduce it over a…

15-06-2005 10:40pm

#1

Aim2Please

Closed Accounts Posts: 43 ✭

Join Date: November 2004

Posts: 21

Hi all,

I was wondering if a credit union loan would be a good way to reduce a mortgage loan? I need to reduce my loan to value ratio as I am considering the purchase of another property. My LTV is currently 84% and it needs to be under 80% to borrow more and to be able to release any equity. I hope to reduce it over a year.

Any advice would be greatly appreciated.

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Comments

#2 16-06-2005 8:21am

RainyDay

Closed Accounts Posts: 6,925 ✭✭✭

Join Date: May 2002

Posts: 6830

Sounds a bit crazy to me. So you'll be borrowing from your CU at approx 8% to deposit against your mortgage (charging approx 3%), and then (presumably) repaying the CU loan when you get your equity release? Are you quite certain you really want to invest in property at this time? To me, it seems largely over-priced for investment purposes. Rents have dropped, landlords are having trouble keeping tenants. Have you run the numbers to see if this investment will actually make you money?

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