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Remortgage concerns over interest rate increases
flusterbluster
Posts: 6 Forumite
Hello all, as the subject details my main concern is a sharp rise in interest rates.
I am coming to the end (on 31/12/09) of a 2 year fixed rate mortgage. During those two years my salary has increased substantially by some £7,500. I have always been able to repay my mortgage on my flat (purchased for £85,000) which I currently hold with the Bank of Ireland.
My concern is simply that I would like to keep this or a similar fixed rate of 6.05% for the lifetime of the mortgage. If interest rates shoot up I won't exactly struggle to repay but should my mortgage reach £750-£800 a month I will be concerned.
The big problem I have is that my deposit was quite low - I had few savings and could only raise 5%. However I am now in a position to overpay my mortgage payments and shorten my term, something I would very much like to do.
My bank, the Alliance and Leicester have said that although I am a low credit risk none of their mortgages will offer close to the 85-90% LtV I will likely need.
Basically I am asking for advice on the best way to protect the asset that is my home, and best plan for an uncertain future.
I have already malied my current lender to ask if they would consider continuing the fixed rate offer for another term - ideally five or preferrably ten years.
Nick
I am coming to the end (on 31/12/09) of a 2 year fixed rate mortgage. During those two years my salary has increased substantially by some £7,500. I have always been able to repay my mortgage on my flat (purchased for £85,000) which I currently hold with the Bank of Ireland.
My concern is simply that I would like to keep this or a similar fixed rate of 6.05% for the lifetime of the mortgage. If interest rates shoot up I won't exactly struggle to repay but should my mortgage reach £750-£800 a month I will be concerned.
The big problem I have is that my deposit was quite low - I had few savings and could only raise 5%. However I am now in a position to overpay my mortgage payments and shorten my term, something I would very much like to do.
My bank, the Alliance and Leicester have said that although I am a low credit risk none of their mortgages will offer close to the 85-90% LtV I will likely need.
Basically I am asking for advice on the best way to protect the asset that is my home, and best plan for an uncertain future.
I have already malied my current lender to ask if they would consider continuing the fixed rate offer for another term - ideally five or preferrably ten years.
Nick
0
Comments
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I think the BOI's SVR is 2.99%. You'll be able to overpay quite a bit based on this. Overpay as much as you can with the aim of getting a fixed rate as soon as you have the LTV to get one.0
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