So, long story short, the wife and I are getting divorced. It’s all going through right now and I hope/expect the Decree Nisi to be coming in the post any day now. We’ve also agreed financial settlement that will involve me getting her share of the house and her getting, let’s be frank, a shit-tonne of money.
Most of the cash I can get from what savings I have and the money my father left me in his will, but I am 90k short and will need to get this somehow so that I can get her out of my life.
My plan was to remortgage the house for the extra money and then pay her off, but the current mortgage has six months to go and their offer of taking out an additional product for the 90k would see me paying an extra £400 a month for the two year fixed period and will mean I am out of step for the remortgage of the main amount.
The alternative is to pay a 5k early repayment fee and re-mortgage with a different company at a lower interest rate, saving about £200 a month (if not more) and then having a single mortgage. The deals I see with low interest rates do have a set up fee of about 1k, so the saving in money over a two year fixed period is effectively £0.
I did have a thought that I might be able to borrow 90k from the bank for six months, but it seems that banks don’t generally lend that sort of money; 25k max.
Anyway, what’s the best option? Take an early hit knowing that I can overpay the additional money for the fixed period of the re-mortgage, or stay with the same people and risk one product making things more expensive on a variable rate for six months just to save 5k?