When my fixed mortgage expires........

mattknight

Hello,

My mortgage expires next august (which will make the mortgage 3 years old).

Currently my dad and i are the two names on the mortgage although my dad has nothing to do with the payments or anything (he is just on there so there was a big enough income to get the mortgage)

the mortgage is for £116,000 and I earn around £17,500.

Due to my dads age the maximum mortgage term we could have is 22 years.

I am currently paying Interest Only.

I was wondering what my chances would be of renewing/remortgaging so its just in my name with a longer term so I could pay repayments rather than just interest only.

i thought I would ask on here first to see if anyone knew before asking round different brokers/banks.

Many thanks

MrMicawber_2

Well - you might struggle to get the mortgage changed to your name only because whichever way you look at it your mortgage is at an income multiple of 6.629 of your salary.

There should be nothing stopping you extending the term anyway but do check the amount of reduction you get. It might not be as much as you think.

However going repayment is a good idea so well done for recognising that one early on.

There are a couple of other things which might be helpful and this assumes your interest only payments aren't currently maxing you out.

1) Keep the same term and change part of your mortgage to repayment - increasing this as your salary rises each year.

2) Put money into a savings account and when you have enough for a capital repayment pay it your mortgage, reduce your mortgage payment, increase your savings and so on.

mattknight

many thanks for that!