5 year fixed ending, will my payments increase when I remortgage?!

johnhubbard

Hi guys,

i'm really confused!

My 25 year fixed mortgage is due to finish its first 5 year fixed period in February 2010, the current rate is 4.99% and the monthly repayment is £570, I owe £90,000.

I want to switch to the best rate available in February and I guess I should be able to get around 4.75% or less fixed for "x" number of years.

Using the BBC Mortgage Calculator (google it) and 20 years as the remaining term, £90,000 owed with the lower interest rate of £4.75% my payments go UP to £589 :o

If I managed to get the same interest rate i'm on now 4.99% my repayments would go UP to £601.30 - thats a massive increase a year for me.

When you remortgage is there a special calculator to use which takes into account you've already paid 5 years and doesn't treat the "term remaining" field like a new mortgage?

opinions4u

johnhubbard wrote: »

My 25 year fixed mortgage is due to finish its first 5 year fixed period in February 2010, the current rate is 4.99% and the monthly repayment is £570, I owe £90,000.

How much is your property worth? Who is your lender? What is your lenders standard variable rate (SVR)?

I want to switch to the best rate available in February and I guess I should be able to get around 4.75% or less fixed for "x" number of years.

Take a look at www.moneyfacts.co.uk to check out current deals.

Using the BBC Mortgage Calculator (google it) and 20 years as the remaining term, £90,000 owed with the lower interest rate of £4.75% my payments go UP to £589

Where did you get your £90,000 balance from and at what point in time?

Have you had any fees added to your mortgage at any stage? Are you in arrears? Have you ever been in arrears?

When you remortgage is there a special calculator to use which takes into account you've already paid 5 years and doesn't treat the "term remaining" field like a new mortgage?

How much did you borrow originally?

Hopefully answers to the questions above will allow people to give you more helpful answers.

My guess is you borrowed around £97k and you have got £90k from an old mortgage statement. Debt at the end of year 5 should be around £86.5k.

Don't forget, it's not obligatory to remortgage. You have the choice to do absolutely nothing.