Mortgage advice

benwatson_2

Hi, I wonder if someone can help.

we remortgaged our house about two months before the base rate started to drop. the problem is that we had to move to an interest only mortgage as the payments were going to be in excess of £690 a month. atm our payments are £509 (just interest). we are tied into a Fixed three year mortgage at something in excess of 5.4% (not sure the exact figure is) anyways our mortgage is for £108k. but the total repayment works out at £258k over 23 years.

we have recently looked into switching to the one account (virgin) as it claims we can pay our mortgage off over the course of 16 years only paying back £154k total. Monthly payments would workout at around £545. we only have around 3K in savings and would like to hold on to that where possible.

It will cost us around £3k to buy our selves our of our current mortgage (get a feeling this is where our savings would go unless we could add them to a remortgage).

Anyone have any ideas if there is a way we can switch to a decent repayment mortgage without taking a massive hit??

Any advise is helpful

Thanks
Ben

_Andy_

Will your current lender not allow to you change to repayment?

benwatson_2

not with out a charge and a what seems to be a massive hike in mortgage payments. we are with the Halifax