Fixed rate ending in Feb - what do I do ?

devilhunter

Hi everyone - this is my first post but I have been a 'lurker' for a while.

My fixed rate self cert mortgage with GE money comes to an end in Feb 09. It is an interest only mortgage and I wish to change the mortgage to a repayment but I am happy to stay with GE Money.
Can I just start paying capital on top of my repayments or do I have to have a new mortgage deal ?
I am not bothered to much about the rate (within reason we are on around 6.75%) but what does bother me is I saw on the news that someone may lose their house because their bank (Nat West) is withdrawing their mortgage despite never missing a payment or being late) because their fixed rate is at an end.
My question is am I at risk from this since my GE Money record is spotless. I still would like to stay self cert if poss.
The figures are
value - 230000k earlier this year
mortgage - 175000k
secured loan 20000k

my income is pretty good at the moment and I see no reason for that to change for the foreseeable future.
Thanks for reading
DH

devilhunter

Gorgeous_George wrote: »

At the end of the fixed rate, you will go onto their standard variable rate (SVR) or another rate as detailed on the key facts document.

You could stay on 'interest only' and overpay. This is effectively a repayment and may not require a change to your current deal.

GG

I did not realise you could overpay on an interest only mortgage to be honest.
Thanks for the reply.

_Andy_

devilhunter wrote: »

My question is am I at risk from this since my GE Money record is spotless. I still would like to stay self cert if poss.

What would be the reason for this? I ask because a standard mortgage would be cheaper than self-cert.

devilhunter

_Andy_ wrote: »

What would be the reason for this? I ask because a standard mortgage would be cheaper than self-cert.

I wont beat about the bush Andy. I like the way a self cert mortgage works.
I run a small taxi firm and I am forever trying to keep my tax bill down and a normal standard mortgage would require detailed accounts which I simply dont want to make public.
The business is struggling as it is and the only way I can make ends meet is to do my own 'accounts' so to speak.

This country is a joke when it comes to being self employed - this government gives no help what so ever to people like me
I make no apologies for being like that this. I never voted this shower of pratts in.

KTF

I assume this is the article you mention about Natwest changing their mind.

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=461591&in_page_id=8&in_a_source=Daily%20Mail&ito=1565

As the comments suggest there is something else about their story that isnt being told.

devilhunter

KTF wrote: »

I assume this is the article you mention about Natwest changing their mind.

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=461591&in_page_id=8&in_a_source=Daily%20Mail&ito=1565

As the comments suggest there is something else about their story that isnt being told.

Yes thats the story.
I have been trying to work out the reason myself and I agree there is more to this than we are being told.

Nonshy

quite a worrying story but does seem a bit strange... don't see why any major lender would act like this for "no reason"... just causing more bad publicity and more panic to already worried customers