Years ago, I had great loans with Wizard that got sold, sold and sold again. In short, my interest rate was close to 10% at a time when the variable rate was under 6%. The loans had also got very messy and from memory there was about 7 splits across 3 properties (1 PPoR, 1 existing IP and one new IP).
I secured the services of a mortgage broker who get me a much better deal with another lender with three issues:
1. a condition of writing up the loans was that the 2 IPs be fixed rate at 6.39%
2. the PPoR was cross-collateralised with the new IP
3. the PPoR loan with an offset was quite small (for investment purposes)
The PPoR loan is fully offset and the fixed loans have 10 months to run.
I want to:
1. un-cross-collaterise the security properties
2. break the fixed rate and re-fix at 4.89%
3. finance a new IP I am about to purchase (around $500k)
At a rough estimate, it would cost $11k to break but save close to $14k in the first 12 months. Plus, there is the security of having 4.89% for three years.
Since I am re-financing with the same lender, fixing for three years and boosting up my loans by potentially $500k, is there any chance of the lender maybe relaxing the penalty interest a little or waiving it altogether?
This is something I will be putting to the mortgage broker but I can't see him until next week so until then I was wondering what others experiences are.
I secured the services of a mortgage broker who get me a much better deal with another lender with three issues:
1. a condition of writing up the loans was that the 2 IPs be fixed rate at 6.39%
2. the PPoR was cross-collateralised with the new IP
3. the PPoR loan with an offset was quite small (for investment purposes)
The PPoR loan is fully offset and the fixed loans have 10 months to run.
I want to:
1. un-cross-collaterise the security properties
2. break the fixed rate and re-fix at 4.89%
3. finance a new IP I am about to purchase (around $500k)
At a rough estimate, it would cost $11k to break but save close to $14k in the first 12 months. Plus, there is the security of having 4.89% for three years.
Since I am re-financing with the same lender, fixing for three years and boosting up my loans by potentially $500k, is there any chance of the lender maybe relaxing the penalty interest a little or waiving it altogether?
This is something I will be putting to the mortgage broker but I can't see him until next week so until then I was wondering what others experiences are.