I need help with a new loan structure!!!

[haydos1979]

Hi I need some advice on a new loan structure. The current loan structure we have is not suitable as it has tied up all our equity.

Current Loan structure is as follows:

IP1 (previously was PPOR) – The loan is held by Suncorp and a standrad variable rate and is still principal and Interest.

IP2 – This loan is held by ING and is interest only and fixed for 5 years at 8.24%. We have 2 and half years left until the fixed rate is up. ING has used IP1 as security by taking out a 2nd mortgage on IP1. This has locked up all the equity that we have. ING The break Cost are approx $19K.

We have around 100K equity available on IP1 and we can not use it because of the 2nd mortgage that ING has on it.

I am looking at refinancing so that each IP with same bank.

If you could provide some advice that would be great appreciated.

 

[Rolf Latham]

Hi

What are the actual loan amounts and prop vals pls ?

I reckon you may be able to do something that middle of the road

ta
rolf

 

[haydos1979]

IP1 - loan amount 370K - approx Value 520 - 540K
IP2 - loan amount 285K - approx value 290 - 300K

 

[Rolf Latham]

Hi

Assuming you dont wnt to exit the fixed rate

id be tryig this

Ring ING and ask for a partial break of the fixed rate loan on IP 2 to 240 000

If that cost is not insane, get a val done and get ING to secure the remnant loan to IP 2 only

Get an equity loan on IP 1 to 80 % of its value and get on with whatever you had planned

ta
rolf