Remortgaging advice

ROger_raBbit_3

Hi everyone,

Wondering if anyone could give me any advice on whether to stick with my 2 year fixed rate mortgage (at 6.8% on a £115000) of which runs out in May 2010. Or pay the £1400 exit fee and try and find a better rate?

I am currently paying £654 a month

This is my first mortgage so am very new to all of this!

Any help would be greatly appreciated.

dimbo61

We dont know enough info to give any views ! NOT ADVICE !!
LTV,income,and lots of other things need to be taken into consideration before changing lenders.
What type of deal are you looking for and how many years do you want the deal to last , How many years left on mortgage , do you want to clear it quickly ?
Check if you can overpay your mortgage each month with your lender and speak to a whole of market mortgage broker to see if they can help.

Cannon_Fodder

What LTV do you still have on the property? (i.e. what deposit did you put down, and what affect has the house price crash had on your region?)

The level of LTV will dictate the rates you will be offered. 90% is not as good as 75%, in turn not as good as 60%...

The exit fee is roughly equivalent to 1% on your deal.

£479 would be roughly what you would pay at 5%, plus spread the £1400 fee over 14 months remaining on your deal (allows a couple of months to arrange it), adds another £100 a month, overall that means you save less than £100 a month...

...IF you can get such a deal. Oh and the NEW arrangement fee has not been counted, either.

Seems borderline, barely worth the effort.

ROger_raBbit_3

I am on an interest only mortgage at the moment.

£6000 deposit, so 95%.

I've read on a few websites that in my area house prices have dropped by 9 or 10%

feisty1

RR............Imagine you are a lender being asked this question, what would your reply be?

_Andy_

95% and interest only ? You're not going to be able to go to another lender.

Cannon_Fodder

_Andy_ is right.

Stick where you are. Start overpaying, if possible. Research what SVR you will change to, after May 2010, and get ready to pay that...