Mortgage Advice Needed Please

mikeopvc

Hi there, just looking for advice here, bank of scotland mortgage fixed rate ends in feb 09 so going to need a new deal, I'm not really clued up on this sort of stuff but don't really want to just go into the high St banks and ask as they will just confuse me. also i think i would get better advice from the MSE forum.

Current status is

£119,000 @ 5.59% (fixed rate)

£30,000 @ 6.84% (additional loan)

£599 @ 7.85% (product fee)

Total = £149,599

Monthly payment £952.57

House value = £220,000:rolleyes: (slightly generous but hey we all do it)

Looking to consolidate the lot in feb and would even like to borrow a bit more to do the house up but not sure if this is wise or if anybody would actually give us any more.
Am i likely to see an increase in monthly payments?
I think I would prefer a fixed rate for stability but not sure for how long

any advice welcomed and in laymans terms if possible

thanks in advance

herbiesjp

What is your income?

Is the £220k a realistic figure? Or could it be a little lower in the current climate?

Do you have any other personal loans/credit cards etc?

Do you have a good credit history?

mikeopvc

My income is approx £20,000
Self employed so perhaps a self cert would be in order as in my line of work (double glazing)no salary is guaranteed.
Wife's income £15,000

OK then perhaps £210,000 would be a more realistic value

No other loans, credit cards etc

excellent credit history

thanks

herbiesjp

As long as you have proof of your £20k via accounts, you should be able to get standard high street rates.

Looking now is maybe a little early, but keep scouring the deals, as that way you will have a good idea of what is on the market nearer the time

mikeopvc

Ok thanks herbiesjp

herbiesjp

No problem

There are some deals, that you could get offered to you and be valid 6 months in advance, but with rates starting to come down at the moment, you might just want to wait a little.

Also by taking out a deal with a fixed expiry date i.e. fixed until 01/10/2010 - by only starting the mortgage in February also means that you are eating into your fixed rate period (or any initial period for that matter) before your mortgage has even started

Best bet would be to chat with a whole of market mortgage adviser to guide you through it

sarkin

We only do self cert for the self employed who can provide a bank statement, the days of just making up a figure have long gone (not that we did). Lots of cases recently where brokers have had big fines for not checking income.

mikeopvc

Do you think it's likely that my monthly payments will increase?
I can't work out the overall rate i'm on as it's split into 3 different lots so don't really know if I would benefit from say a 6.5% rate for example?

herbiesjp

mikeopvc wrote: »

Do you think it's likely that my monthly payments will increase?
I can't work out the overall rate i'm on as it's split into 3 different lots so don't really know if I would benefit from say a 6.5% rate for example?

Yes - it is likely your payments will increase