What is my best option?Urgent help please

Hi,
Our mortgage is up at the end of February 2009.We are on a 2 year fixed rate interest only with the Halifax at 4.99% and then it switchs to SVR of 7.25%.Our house is worth 138000 and with savings etc... our mortgage now will be for 103000.What is my best option?Stay interest only and overpay?Go to a full repayment?Tracker or fixed?2 years or 5 years?If so what are my best options?
Sorry for so many questions but i dont really know what to do and we want to get this decision right this time.
Any help would be greatly appreciated.
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Comments

  • dwsjarcmcd
    dwsjarcmcd Posts: 1,855
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    Somehow you need to start repaying your mortgage, so you should switch to a repayment loan. Speak to the Halifax and see what the options are with them. Having done that, if you are unsure which product is best for you, speak to a mortgage broker, who will help you find the most suitable product and lender for you.
  • payless
    payless Posts: 6,955
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    are you sure the svr is 7.25% .. mainstream Halifax is 4.75%
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • It says 7.25% on my mortgage documents.
  • dwsjarcmcd
    dwsjarcmcd Posts: 1,855
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    Mourinho wrote: »
    It says 7.25% on my mortgage documents.

    Yes it would quote what the then current SVR is, but that will be replaced by the now current rate, so you won't be paying 7.25% in Feb.
  • Hi Mourinho, your first bet would be to request an updated mortgage document with the current rate. You might find your new payment still sustainable as interest rate should be in the neighborhood of 4.7%. Subsequently, the choice would be yours to switch to repayment or not depending on your current financial circumstance.
  • Maybe should i wait till after 8 January to see if rates come down again?I would like a long term 5-10 years fixed rate full repayment if possible but dont know what % would be described as a good rate?
    Sorry i didnt realise my SVR would come down,just thought it would be what was on the document.
  • Mourinho, I bet hearing 4.75% got you feeling better... :T

    You do need to start pay the capital though, IMHO.
  • payless
    payless Posts: 6,955
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    the V in SVR means Variable
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Thanks for that.I am just looking help.
  • dimbo61
    dimbo61 Posts: 13,710
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    If you plan on staying in your home for at least the next 5 years then taking out a 5 year fixed repayment mortgage gives you security of knowing what your mortgage costs will be for the next 5 years.
    By feb 2009 the BOE base rate cuts will have worked there way into the main lenders ( including the Halifax ! ).
    Its then up to you if you can afford a repayment mortgage and as I said this gives you time to repay some of the mortgage and build up equity in your home.
    I am in the middle of a 5 year fix and happy with my decision even if the BOE rate is now 2%
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