Remortgage advice (cancel current and finding new lender)

barteh

Im really after some advice if possible.

Like many, we are facing the same dilemma with increased housing costs, lowered incomes and generally finding bills hard to pay. On top of that, we have been paying for our marriage and are due to get married in just 6 weeks time!.

The long and short of it is we are struggling to pay all our monthly outgoings and the wedding, but the wedding must go ahead.
The good news is we have a small chunk paid off our mortgage, which gives us a small amount of flexability.

We are currently with Abbey and have just over a year left. Our current rate is 6.4% and our monthly mortgage payment is £1001.
The house was initially bought for £205k and we now owe £155k, but ofcourse the value’s have dropped and we have a good inclination that its worth somewhere around £189k which leaves us looking for a remortgage of around 80%.

Can anyone offer any advice of lenders who are lending based on a low rate either fixed or variable? We REALLY need to get out of our current deal and save a good 200-300 a month if possible.

Any advice would be greatly appreciated.

IRWM

Hi Barteh,

I have no idea how people multiple quote on here so i will just cut and paste what you have put ok. Exactly the same effect though.

Quote
We are currently with Abbey and have just over a year left. Our current rate is 6.4% and our monthly mortgage payment is £1001.

I am asuming this is on full repayment(capital and interest). Is the rate fixed or on any special terms.

Quote
We REALLY need to get out of our current deal and save a good 200-300 a month if possible.

You have to be careful, as if your current rate is on a deal or special terms it could cost you a penalty to come out of this rate.

I really dont know your full situation but one idea you can look at for a short term, get your wedding sorted etc, you can ask your lender to go on an interest only mortgage. This means you will only pay the interest charged. on your mortgage of 155k it could be around £800 pm. saving you £200.
Beware though, this means you are not paying any capital and what is outstanding will still be outstanding in terms of your debt to them. Could work short term for you.

However, if your not on any fixed rate or special term deal, speak with a IFA / Mortgage broker, they can search the market for the best rates. Most will charge a fee.
I know there are some decent rates out there for people who are relativley low loan to value. you are 80% so depending on what type of mortage rate you are after there could be some deals out there.

Hope this helps and of course, this is just my opinion.