do i need a new mortgage?

gehngus_2

Hi all.
We have just finished a 3 year fixed "self build mortgage" for a D.I.Y barn conversion.
Even though ive done the whole lot myself and saved a bomb, Im still skint as a result and need to know if im paying out too much now.

I have no idea what rate im paying , how do i work it out

I have a 58k mortgage and am paying, £390 PM. thats all i have for now.

Its posible ill be selling within the year so there is no point in taking out anything with a redemption charge.

What do i need to look for? Am i paying more than i should?

thanks in anti..

Steve

HelpWhereIcan

gehngus wrote:

I have no idea what rate im paying , how do i work it out

Which lender are you with? Their 'standard variable rate' is easy to find within a few minutes. The other way is to check your original mortgage offer which will tell you how they calculate your rate after the inital 3 years. Your last mortgage statement may well tell you. Alternatively, give your lender a ring.

gehngus wrote:

I have a 58k mortgage and am paying, £390 PM. thats all i have for now.

does this include any insurances? how many years left? are you on repayment or interest only?

I would have a guess that if you took a 25 year repayment mortgage, your current rate is approx 6.5% based on what you have posted.

gehngus wrote:

Its posible ill be selling within the year so there is no point in taking out anything with a redemption charge.

Normally, NO. Unless you know how much you will need to borrow next time, when that will be and what deals will be available then

gehngus wrote:

What do i need to look for? Am i paying more than i should?

If you will be moving within a year, I would look for a fee free (or low fee)remortgage that has no tie in but will still save you some money.

probably - most people are once their 'introductory deal' has finished.

MortgageMamma

I would look for a lifetime tracker with no early repayment charges, that way you can get a better deal than standard variable rate and still sell without penalty. There is a good one on the market present;y with next to no fee's and only £75 when you redeem the mortgage.

stanmoresaver

I agree with MM- if you decide to DIY the mortgage- rather than use a professional broker - be very carefull that the lender won't charge you a fee to cover the legal work if you redeam your mortgage in the early years.

Hope this helps

SS

gehngus_2

Hi again.
This is the info my wife has found for me
We are presently with the skipton BC and are not tied into anything.

the rate we are paying is 5.89% monthly rp = £383.05

the mortgage amount (cost of land/barn and materials) is £58K and the conversion, now nearly complete has a value of £225k (posibly more if we do something with the 2 acres mountqain & woodland l, such as a summer house with sea views)

Now then. this is where it get complicated.

We want to sell the conversion within the year to release capital. and to move nearer the school/shops/pavements etc.

I will then be looking to start another project. probably a self build which i will need to borrow money for.
The idea being, if we pay off our mortgage and have a cheaper house which is either fully or mainly paid off it would be good for borrowing against.

Wife wants to live in a house with walls for a change so it looks like a house and a plot and another self build mortguage (i think)

I have my eye on a plot which is only £25k with building permision that no one in their right mind would tackle
My wife has found houses that would do for £130 and some she would like at around £160.00

Am i doing this the wrong way around?
Is their some kind of flexible fixed mortguage?
The lifetime tracker sounds interesting, what does it mean.
should i be building and renting?

thanks for your patience
Steve