Mortgage Help Please

englishdesi

Hi All,

I have a 100% mortgage on my one bedroom flat of 179,950. The 3 year fix at 5.99 is due to end in March 2010. It is a repayment mortgage.

Given how low bank SVR's are at the moment, I wondered if it was worth me calling up my lender and switching to SVR. Is this worth me doing ?

Additionally, if I don't do this, what is the option when my fixed rate end next year, my lender Bank of ireland has excited the UK mortgage market.

Any help would be appreciated
Ta
English Desi

beecher

You'd have to pay the Early Repayment Charge so look up your documentation to see how much this is. Some lenders aren't allowing people to leave their fix early to go onto the SVR so you need to phone up and ask if they'll allow you.

Since you took out a 100% mortgage, you're v likely to be in negative equity now. Your only option is to remain on the SVR unless you can overpay your mortgage by enough money to bring your LTV down to below 90%. You need to sort out a plan of action for when rates begin to increase again.

Taylo_2

Pretty much what beecher says. Very unlikely that BOI will let you come out of the deal early even if you do pay the ERC. Start putting money aside if you can afford to do so as when your deal finishes next year the SVR and rates in general may not be as low as they are now. If you are prepared then it won't be too much of a shock. Right now 90% is the highest LTV lenders will go to.