Any ideas? Norhthern Rock repayments

Bill123_2

Hi
I currently have a northern rock 5 year fixed rate mortgage which I took out in Feb 2006, and it is over 35 years. My mortgage is approx 103,000, this includes a northern rock loan. I am looking aat ways of reducing my monthly payments. Does anyone have any ideas as to how I could do this?:eek:

kieran1979

You haven't really given much here to go on matie!

What rate are you on? What's your current payment and what are you hoping to get it down to?

If you haven't already you could go interest only. Though with such a long mortgage this probably won't even reduce it that much.

Bill123_2

I pay 581 a month, and the interest rate is 5.89%

beecher

Going interest only would cost around £505 - as your term is already 35 years you aren't paying much towards the capital which is why you'd save a relatively small amount. I'd be wary depending on your LTV - when your fixed rate ends you want to be in the position to be able to remortgage, and you'll probably need an LTV of less than 90% to do so.

Bill123_2

whats a ltv?

beecher

Bill123 wrote: »

whats a ltv?

Loan to value - ie if your house is worth £100,000 and you have a mortgage of £90,000, that's an 90% LTV.

catriona69

If you want to switch to interest only they will probably want proof that you are setting up another repayment vehicle like an endowment.

dimbo61

Hi Bill dont know what your LTV is but guessing as you have a mortgage and a secured loan ? with NR is going to be high 90/95% YES !
They will not let you change to interest only as you may well be in negative equity already.
What you have is 2 years left on a fixed rate deal at 5.89% which is not that bad ( Rates at the moment for 5 year fixes are 4.89/4.99%)
So you cant cut down on your mortgage so look at EVERYTHING else that you spend money on and try to save.
No more SKY,gym, takeaways, and the little things that cost money ( buying lunch /take sandwiches ! ) etc
You need to cut down what you spend and hope that the housing market recovers and house prices rise in the next 2 years.
Is the loan at a higher rate and can you afford to overpay and clear that.
Get a lodger ! and go look on the debt free board to keep your home
GOOD LUCK