Loan or mortgage.

mommame

Can someone please help me as my head is spinning!!!, I have had a letter from my mortgage lender as my fixed deal is ending and as my mortgage is very small I dont know what to go for..
Here is a little background info.
Amount owing £19000,now reverts to standard variable rate of 7.00%.
Personal details: age's me 50 retired due to ill health, hubby 54 self employed, house worth £100,000
would I be better off with a small mortgage(assuming someone would give us one) or a loan with our house as collateral.
I have been trying to sort this all week but there is so much info on here I am now totally stumped.

herbiesjp

You are better off staying where you are either on the SVR on a new deal from your lender - if choosing a new deal make sure you choose one with no fees - as with your particular loan amount that would be the most cost effective option for you.

mommame

Great thanks,I will ring them on monday and see what they can do for me,I am hoping to keep it flexible so I can over pay when I can.

opinions4u

mommame wrote: »

Can someone please help me as my head is spinning!!!, I have had a letter from my mortgage lender as my fixed deal is ending and as my mortgage is very small I dont know what to go for..
Here is a little background info.
Amount owing £19000,now reverts to standard variable rate of 7.00%.
Personal details: age's me 50 retired due to ill health, hubby 54 self employed, house worth £100,000
would I be better off with a small mortgage(assuming someone would give us one) or a loan with our house as collateral.
I have been trying to sort this all week but there is so much info on here I am now totally stumped.

Probably best staying where you are.

Have you asked your lender if they have any other deals for existing customers? Something with a low or nil arrangement fee - possibly a tracker. Ask them the question!

mommame

Yes I will do,by the way what's a tracker?

opinions4u

mommame wrote: »

Yes I will do,by the way what's a tracker?

It's a mortgage where the rate is linked to the Bank of England base rate. Some so called experts believe the BofE rate is likely to fall further. If your mortgage tracks this your rate will go down too.

That said, if the experts are wrong, your payments could go the other way!

Something to be careful of:
Many lenders will charge you a fee to have a different product to their standard rate. With a relatively small mortgage you need a product with a small fee. If somebody wants to charge you £999 to save 0.5% for a couple of years you will actually be worse off.

Feel free to make the call to your lender, find out what's on offer, post again here for advice and then make a decision.

mommame

Thank you ,I will let you know what they say on monday

mommame

Hi there I have decided to wait a few days before contacting my bank as by then there may be better deals on offer once the government sort out the finances etc.
Right or wrong thing to do? opinions please.

dimbo61

tracker deals seem to be going up as the BOE base rate goes down !
will there ever be (the right time )
Get overpaying and get the mortgage paid off asap
GOOD LUCK

mommame

Will do,thanks will ring first thing tomorrow.

herbiesjp

With a mortgage of £19,000 the rate will make tiny differences in your mortgage payments - so whatever deal you go for, make sure it has no or verry little fees attached to be the most cost effective for you

To explain better - SVR will have no fees to go onto, but they could offer you a lower rates which saves you £2 pm, but with a £999 fee - so IMO it would be better to go on SVR