Any Chance of a Remortgage?

Kavanne

My outstanding mortgage is currently £68000. On my gross income this is an income multiple of 3.6. Do I owe too much to be able to remortgage at the moment? I could knock 10k off that with savings but I would rather not as I fixed those at 6% until Nov 09.

I'm on a standard life tracker at the moment which does mean I am only paying 1.25% but I'd like some security when rates go up again. Should I keep overpaying and relook at 6 months time if I can get it down? What income multiple should I ideally be going for?

opinions4u

Kavanne wrote: »

My outstanding mortgage is currently £68000. On my gross income this is an income multiple of 3.6. Do I owe too much to be able to remortgage at the moment?

Probably not a problem. What's the property (conservatively) valued at? Is there just your income, or a partner that could be added?

I could knock 10k off that with savings but I would rather not as I fixed those at 6% until Nov 09.

Can you draw down any more from your existing mortgage and pile it in to the savings account?

I'm on a standard life tracker at the moment which does mean I am only paying 1.25% but I'd like some security when rates go up again. Should I keep overpaying and relook at 6 months time if I can get it down? What income multiple should I ideally be going for?

I'd make sure any overpayments go in to the 6% account and then review the situation around September time. I don't think rates are going to bounce any time soon, but the idea of fixing before the curve moves dramatically upwards does make sense.

Make sure you are disciplined enough with overpayments going in to the savings accounts to work out which bits (plus interest) are set aside for the mortgage.

Kavanne

opinions4u wrote: »

Probably not a problem. What's the property (conservatively) valued at? Is there just your income, or a partner that could be added?

Partner is a student unfortunately, our LTV was 40% when we bought so I think we are around 50% now.

Can you draw down any more from your existing mortgage and pile it in to the savings account?

I can but that is at Standard Life's SVR which I am sure everyone on the mortgage board knows isn't very good at the moment!!

I'd make sure any overpayments go in to the 6% account and then review the situation around September time. I don't think rates are going to bounce any time soon, but the idea of fixing before the curve moves dramatically upwards does make sense.

Make sure you are disciplined enough with overpayments going in to the savings accounts to work out which bits (plus interest) are set aside for the mortgage.

Yeah I have a SO set up for £100 pm into savings on payday

dimbo61

You are on one hell of a mortgage rate right now so its not worth overpaying when you can get a better return for your money in savings.
First Barclays regular saver 6% before tax £250 a month then fill an ISA Barclays paying 3.61% tax free £3600 this year.
If you were paying out £300/400 a month on your mortgage last year you should be saving at least that right now.

Kavanne

yeah we were paying £433 when BR was 5% and now £269 but I am naughty and with all rise in fuel prices/cost of living I'm only managing to put away £100 into my halifax saver.. i know i know what will happen when rates go back to 5%? Well I'll have to severely tighten my belt!