re-mortgage advice

stressedred

Im in the process of remortgaging and wanting a little bit of advice.

At present im with the Halifax the interest rates are quite tricky as ive got 3 parts at different rates with tie in periods all though early repayment costs are £4500 for the three with up to 3 years still tied in. monthly payment £990:eek: over 17 years.

property value £145000
mortgage outstanding including early redemption charges £1130000

Obviously i want to get the payments down as low as possible monthly! ive been offered a interest only with the nationwide at 6.18% over 3 yrs £619.24.

What is the best way of making seperate arrangments to pay of the mortgage on completion, i.e endowment, savings plan etc.

i only intend to keep the interest only mortgage for the 3 yrs then try and get back on a repayment mortgage but pay a bit of the mortgage off.

any help would be appreciated

_Andy_

Are you quite sure it makes financial sense to pay £4500 + new fees ?

stressedred

hi andythanks for the reply the trouble is the fixed rates are for another 4 yrs, thats why ive tried on the forum for some advice, i must admit i can afford the the monthly payments, but when you see i can go on a rate that monthly payments are cheaper it making me think am i getting ripped. im just waing up the pros and cons.

_Andy_

You're not getting ripped off, you have payment stability which is what you originally wanted.
Yes if you do this the monthly payments may be lower but you mortgage balance is going to be higher.
I really think there isn't any value in what you're proposing.

opinions4u

stressedred wrote: »

Im in the process of remortgaging and wanting a little bit of advice.

At present im with the Halifax the interest rates are quite tricky as ive got 3 parts at different rates with tie in periods all though early repayment costs are £4500 for the three with up to 3 years still tied in. monthly payment £990:eek: over 17 years.

It would really help if you could identify the three different elements of the mortgage. Amount, rate, period, ERC etc. It is possible that you also have more than one term on your mortgage. Please clarify this. Does £990 include any insurances, or is that just mortgage payment?

Obviously i want to get the payments down as low as possible monthly! ive been offered a interest only with the nationwide at 6.18% over 3 yrs £619.24.

Why do you want to go interest only?

What is the best way of making seperate arrangments to pay of the mortgage on completion, i.e endowment, savings plan etc.

Repayment mortgage like you have at the moment is the most popular these days.

I don't have the information from your post to tell you whether remortgaging is a good idea or not.

Gut reaction is that your thinking is probably flawed.

stressedred wrote: »

the trouble is the fixed rates are for another 4 yrs

If you have split products on your mortgage you may be better waiting until the ERC drops off 1,2 or even all 3 before considering a remortgage.

i must admit i can afford the the monthly payments

So why on earth would you want to go on interest only?

but when you see i can go on a rate that monthly payments are cheaper it making me think am i getting ripped. im just waing up the pros and cons.

Have you asked Halifax how much they would charge you if you went on to interest only? That would give you a straight comparison v Nationwide's quote. I doubt Nationwide is more than a couple of quid cheaper when you compare like with like.