Some help please =)

claire0788

Hey,

A little bit of background, I bought my home when I was 18 at 45k 100% mortgage with NR as I used my savings to buy everything in my flat. I have been told it is worth a little bit more (even with the credit crunch) at 50k by a couple of estate agents (as I was thinking of selling but changed my mind).

I will have had my home for 3 years when the fixed rate ends in Feb, the fixed % is 5.99%. Im just wondering what happens when the fixed rate ends ? I cant really dont have a clue about mortgages and nothing has really been explained to me about different ways to pay and all the kinda stuff. Also when the fixed rate ends do I continue paying the same amount each month.

I thought Id ask early so that I know what I need to do when the time comes, if anything.

_Andy_

You may well be in negative equity, or at least have minimal equity.
This will limit your options to your existing lender.

dimbo61

Read all the paperwork that came with your mortgage ?
What does it say happens to your mortgage after the fixed deal ends SVR !
check with NR if you want ( a phone call to the mortgage center )
have your account/ mortgage number to hand.
If you can over the next 8 months clear as much of your current debts as you can overdraft,loan,credit card and the double glazing loan. Highest rate first!
Good luck

StuTheDon

claire0788 wrote: »

Hey,

A little bit of background, I bought my home when I was 18 at 45k 100% mortgage with NR as I used my savings to buy everything in my flat. I have been told it is worth a little bit more (even with the credit crunch) at 50k by a couple of estate agents (as I was thinking of selling but changed my mind).

I will have had my home for 3 years when the fixed rate ends in Feb, the fixed % is 5.99%. Im just wondering what happens when the fixed rate ends ? I cant really dont have a clue about mortgages and nothing has really been explained to me about different ways to pay and all the kinda stuff. Also when the fixed rate ends do I continue paying the same amount each month.

I thought Id ask early so that I know what I need to do when the time comes, if anything.

Hi Claire - firstly if you stay with your current providor you will go onto their SVR (Standard Variable Rate). So, instead of paying the same amount every month, you might be paying different amounts depending on what happens with interest rates. Although low just now, they will eventually rise meaning your payments will go up.

If you want to get another fixed deal so your monthly payments are fixed you are going to have an issue. Unlike 3 years ago you cant get a 100% mortgage now - realistically you need at least 5-10% deposit. So you would be looking at needing to get 2.5-5k together before remortgaging. This would mean you'd need a mortgage of 40-45k.

Hope this helps.

claire0788

Hey thank you that helps alot Stu. I had another read of the paperwork and it said the current SVR when I took the mortgage out was over 7% ! Glad its not at that the now. If I can pay the same as what I pay now while the rates are low, then I can maybe get the mortgage balance a little more favourable for lenders before they rocket up. Well Im hoping anyway.

Thanks again

dimbo61

Northern rocks SVR is currently 4.79% but like I said you are better to clear all your other debts first as they will more than likely be at a higher rate of interest and once you have cleared all the other debts you will have more money to overpay each month.

claire0788

Ye I am working on clearing my debt, I dont plan on overpaying when/if I am back onto a fixed rate.