Mortgage novice help! Coming off fixed rate...

oilybandit

Hi, in 10 months i'll be coming off a 3 yr fixed rate with BOI mortgages.
My mortgage is for 218k after my 10% deposit of 24k was taken off.

I'm currently interest only at 5.5% and make small overpayments a month - i've in fact paid off another 6k.

I'm sure when the fixed rate ends it goes up above 7%

What is the best thing to do? - no one i know knows a thing about mortgages and i really want to get the best deal but i have no idea where to start. I'm terrified of commiting to a bad deal and getting stuck in a financial mess. Plus because i still need to borrow a high amount of the value of my home am i onto a loser?

Please help guys!

A thousand thanks for any advice,

O

beecher

You'll go onto their SVR which was 4.49% before today's announcement. Who knows where it will be in 10 months.

Your LTV is probably going to be too high to remortgage elsewhere but continue what you're doing by making overpayments and review the situation nearer the time.

oilybandit

Thanks for your swift reply. I'm sure they said it would be 7%+ but because of the recent changes it will have dropped? Could i be locked into the 7% or is it common prctice to go onto the companies SVR after a term on a rixed rate? Sorry, like i said - novice when it comes to my mortgage!

beecher

oilybandit wrote: »

Thanks for your swift reply. I'm sure they said it would be 7%+ but because of the recent changes it will have dropped? Could i be locked into the 7% or is it common prctice to go onto the companies SVR after a term on a rixed rate? Sorry, like i said - novice when it comes to my mortgage!

No worries - ask whatever you need to! The documents you're looking at will give you the SVR at the time of printing - you aren't locked into it or anything, and you usually do go onto the SVR when a fixed rate comes to an end. Some do go onto a tracker though - no idea about Bank of Ireland - so read over your documentation and post it on here if you aren't sure. Most SVRs probably were around 7% in September and before so it sounds right.

oilybandit

You're a star - yes it says "after the initial term....it goes to 6.84% SVR until maturity"

So if BOI svp is currently at 4.49% at the mo, that's good for me at the moment.
As you said goodness knows where we'll be in 10 months but at least i'm getting my head around it in advance!

Thanks

O

lullabellea

You feeling better Oli?

x

(small world eh?)

lullabellea

And Oily

I was on here looking for mortgage advice too since I'm always scrapping with Mr Impossibly Precious in the green room - impossible to get it from the horses mouth innit!

oilybandit

Blinking heck! Small world indeed!

Much better thanks - I can't tell you the pain I was in on the bus home! The rest of the day was hell. Terrible. 90% better now. In fact much better, especially now i've started learning about my mortgage. I'm SO good with my money in every other way but I've got to start getting my head round all this now - I was in the dark a bit! When I got my first mortgage my dad's advisor said "do this one" so I did!!!

Loads of good advice/info on here, just what I was looking for.

Yeah, the green room and the 'orse's mouth is for losers!! haha

x