Should i try and remortgage?

sammiejo69

Hi everyone,

I'm new to this so if someone has posted something exactly the same then i apologize.

i have a fixed rate mortgage until October 2010.

My friend said that because the interest rate has dropped to 0.5% i should try and remortgage to get a better deal. Does any one agree?

the value on my house has dropped from £210,000 to about £195,000 and i owe £180.000 (little less as i have made a few payments). my current mortgage lender is nationwide and Early repayment would be about £5000.

My monthly payment is £1250.00.

If you do think i should remortgage where do I start as I've never done it before.

Thanks

Pee

Speak to a mortgage adviser. The first question is can you remortgage. the second question is what would be the cost of a new product and taking into account the arrangement fee on the new mortgage and the redemption penalty on the old one, will the reduced payments over the timescale be worth it.

Peelerfart

What interest rate are you on at the moment ?

Leon_W

Nope.

You would be trying to remortgage your property at greater than 90% LTV which in todays market is impossible.

Even if you could get the LTV down to 90% it would still be very difficult and you would be looking at rates of around 7%.

By all means speak to someone in more detail but my gut feeling is you're stuck with what you've got.

Regards

dimbo61

If you have £5000 to spare then overpay your mortgage by £500 a month until your fixed deal ends.
Your LTV is poor and the ERC plus fees for a new deal make this a non starter!

robbyo

I posted on something similar today.

To answer your point, I would say it's unlikely you would get a deal that would reduce your paymernts by gross £5000 over two years. Given that you revert then to Nationwides Variable rate of 3%, you won't do better than that.

sammiejo69

Thank you everyone!