What mortgage to go for

atomicsheep

Ok I've been able to help people over on the Benefits board.

But this is one area I need (lots of) help!

Ok so here's the basics:

I took out my first mortgage in May 2005 when I was 24
Because I was on £14000 I bought the cheapest place i could find £54000 and I took it over 40 years to keep the payments low.

My mortgage was fixed @ 5.69% ish for 5 years with Halifax.

I have 2 years left on the term in May. But as of this MAY i am out of any redemption fee's. So I wanted to shop around to make the most out of the low rates at the moment.

Im repaying £289/month currently. I've looked at the following options via compare websites.

I can remortgage with a fixed rate for 2 years paying about the same now but taking 5-6 years off the 36 years that remain.

Or go variable and pay less per month on the mortgage (about £215/month)

I looked into the "one account" but dont really get whether i would be better off with this. It boasts the fact that I could pay as little as £215/month. But I dont have any savings and don't have a big wage so not sure I could benefit from it.

My home is currently worth approx 65000 ish given the market.
I was on £15360 going up to £20240 shortly.

I think that should be enough info to get some feedback.

Any ideas what i should do. Stick out the mortgage I've got or go for a deal earlier to capitalise on the rates?? Info about the One Account would be great also.

Robert_Sterling_3

"I took out my first mortgage in May 2005 when I was 24

My mortgage was fixed @ 5.69% ish for 5 years with Halifax.

I have 2 years left on the term in May."

So it matures in May 2010

i.e. It has a bit over one year to go.
:EasterBun :EasterBun :EasterBun :EasterBun

atomicsheep

sorry i think ive confused myself.

This May coming is when redemption reduces to zero. May 2010 is when mortgage matures.

herbiesjp

The fixed rate and penalties normally expire at the same time - are you sure that your redemption goes to zero but you have a year left on the fixed rate?

Have a look at your offer letter, it should be on there

atomicsheep

yes definatley. I checked my docs and this May is when early release fees reduce to zero. May 2010 is when term ends

herbiesjp

Well if you are out of your penalty period you can choose any mortgage deal you want.

You've put the house value but not the mortgage amount so can't see what LTV bracket you fall into, but you should also see what Halifax offer you first

Robert_Sterling_3

What is your house worth now.
Use Halifax or Nationwide House Price Index ( Or use both ).

Having used the HPIs then find your outstanding balance on your mortgage and let us know how much equity you have in your property.

atomicsheep

Ive had lots of work done on the house. But according to Halifax's house price calculator im in negative.

If I bought for 54000 its now worth 52000 apparently

However Ive had central heating installed throughout and new boiler. New kitchen and modernised much of the house. So not sure what value that would add.

It was estimated at 69000 in 2006/7 i believe