FTB A Few ?s On Remortgaging after a 2yr fixed rate

firstfootontheladder

Hi,

Im a newbie first time buyer just stepping on the property ladder & i have to say that these forums have provided me with a massive amount of information over the past 3 weeks.

general situation,

me & my gf found a 2 bed house, put in an offer of £124000 which was not accepted, seller said £125000 and we can have almost all furniture needed to move in straight away! (photos have been taken for proof of whats being left, will be checking this with solicitors list of included items) . original guide price was £129950, so a nice saving there plus also no stamp duty :j
saved up £3750 to put down to get a 97% mortgage interest free, Will be over paying (max 10% yr) to be inline with a repayment mortgage, with the ability to hold back when needed. i plan to pay off at least enough to get below £120000 if not more within the 2 years fixed rate. forgot to add the HLC + Arrangment Fee, Total Mortgage Will be £123542

so when my fixed deal is up i revert to SVR of 6.5% from the 2 year fixed of 4.89.

this was a joint mortgage based on wages of,
21500
12000

me & my gf are expecting our baby in about 3.5 months & she will be returning to work part time, as we are lucky enough to have her mum babysit for a few hours a day.

my situation is if her mum possible cannot babysit & my gf has to leave work, would i be able to remorgage on a my single wage in 2 years time?, currently £21500 (pay rise due soon) + unlimited overtime practically, or would i be stuck with the 6.5% until i overpay enough to get to the amount the new lender will lend. obviously i will be contacting my broker nearer the time (or he should contact me)

sorry for such a long first post :rotfl:
can i just welcome myself to the world of money saving expert :beer:

i look forward to any replys.... thanks :T

Joe_Bloggs

Assuming the term is 25 years (300 months) @4.89% after two years you will owe £118,236. Payments would have been approx £715 a month.
Why not ask your broker what you remortgage options will be, given the proposed lenders, current policies and your likely financial status. It is often easier to remortgage with an existing lender. Some existing lenders offer poor value.

In May 2008 you go on to SVR of 6.5 % This would mean a monthly payment of £827 (term 23 years).
The only thing wrong with the deal is the crappy SVR rate. This SVR is the barb on the hook. Can you not get a longer fix, or a better long term product altogether, rather than get locked into a crappy SVR ? You may have a hard time paying £827 a month and having to save for a remortgage deposit and manage a new family on what you earn ?. Good luck and best wishes.

J_B.

firstfootontheladder

Thanks for the reply

i will speak to my IFA tuesday to see if i can change to a 97% LTV 3 or 5 year fixed rate with halifax as i could see a this being a big help due to my position.

unfortunatly i have payed up to have a survey carried out, as my offer on the house was accepted subject to a survey being carried out within 2 weeks,
hopefully this should no affect me possible changing to a better long term rate.

thanks again joe :beer: