Thank you for your response, it is kind of what I expected to hear. I had a difficult time (8mths) whilst my mortgage advisor transferred my mortgage from Northern Rock to the Abbey as the figures where not desirable then. At least when my current deal expires I will be able to obtain a cheaper rate on my mortgage seeing as I took mine out when rates where at a high.

Hi Julia

Thanks for all the above information.

The information that is most valid in whether you are able to look at obtaining a better deal on your secured loan is your mortgage balance and the value of your property.

You state that your property was valued in February last year at £91,000 and you have a outstanding mortgage balance of aprox £75,000.

Due to the current market conditions, the fact that property prices continue to fall mortgage and secured lenders have increasingly restrictive criteria regarding percentage of your property they will allow you to secure against.

Based on the figures that you have provided me with in your last email, the secured loan with First Plus (£34,610.43) and the mortgage balance (£75,220) the total exceeds the value of your property.

Previously First Plus would allow customers to borrow upto 125% of their property value but in recent months lenders have reduced this to a maximum of 85% for secured loans.

This information unfortunately limits your options as you will be unable to move this to a better deal at this time.

Hopefully by the time your mortgage come up for renewal in 2010 the situation may be brighter as you will have a smaller balance on the loan and hopefully more products may have returned to the market.

Many thanks

Please find answers to your questions:-

Amount outstanding on the loan - £34610.43 as at 10th April 2008.

Here's the full details at time of taking out the loan August 2006.

Amount of Loan - £35,000

Number of Repayments - 300

APR 9.9% variable

Interest Rate 9.516% PA

Monthly Payments - Currently £341.46 - Interest Rate 11.5% (Its a variable rate loan)

Your property value and mortgage balance - Value , Mortgage Balance £75,220.00

I remortgaged as I was with Northern Rock when they went flop, my fixed deal ran out and they would not renew it so I am now with the Abbey since July 08. Loan of £74650.00 over 22 years, interest only, Fixed rate of 6.39% until 3 May 2010, Initial Interest Rate 6.39%.

I have today spoken with the Abbey to see if I could remortgage to a better deal. I would have penalty of £2256.60 to be paid up front, can not be added to mortgage. Fees of £699. This would be a fixed rate of 4.79% until 2 APril 2010. It would make my monthly payment £300.25 instead of £400.55 which it currently is. But all in all I gather I would be better off money wise to stay as I am and on 3 May 2010 then remortgage to perhaps a better rate as I would have no penalty charge. When you work things out I would currently be better off as I am even though I could save £100 per month but would have to pay out £2256.60 to be able to do it and only need to for about 1yr as I would then have no penalty fee.

What would you advise I did with my loan?

What would you advise I did with my mortgage?

My salary is £1814.17 before Tax/Ni etc.

My property was valued at £91,000 in February 2008 when I started my mortgage discussions with the Abbey, they did a valuation.

It is a pain the First Plus and their variable rate always up it when it goes up but when the rate comes down they very rarely if ever reduce theirs.

Hi Julia08

The options available to you will very much depend on a) how much you are looking to borrow b) how long you want to pay the loan over c) the amount of equity you have available in your property and d) What your credit rating is.

With the markets being the way they are at the moment obtaining an unsecured personal loan is becoming increasingly difficult. The latest research shows that aprox 50% of all Personal Loan applications are being declined compared to about 30% earlier in the year. This is down to a lack of funds so the banks are cherry picking the customers they perceive to be the lowest risk.

If you have a good/excellent credit rating and you are looking to borrow under £25,000 with a term of 7 years or less then an unsecured option may be beneficial to you.

If you are outside the above loan amount/term then a Secured Loan may be worthwhile. Whether moving from FirstPlus is the better option for you will depend on your ability to get a better rate elsewhere.

Could you confirm

How much you have outstanding How long you have left on the loan What interest rate you are currently paying Your property value and mortgage balance

Knowing the above details will give me an indication of whether you meet the basic criteria for Platinum.

Thanks

I have a FirstPlus loan and would like to see if I can make life easier by either unsecuring it by going to another lender or changing to another secured lender - would you think this is perhaps not the time to be doing this. I did a brief quote on the net and Platinum Exclusive seem to be alot less money than I am paying all beit thats not based on my full credit rating, I did do the Equifax option though.