Mortgage coming up for renewal. Help please.

lisa2905

I am also with the Halifax and my Tracker will finish end of Nov. I am going to do nothing !!! Over the past 2 years my mortgage started at £1400 and something per month now its gone down to £900 and something per month. It wil go up to £1000 and something when my tracker finishes. That still gives me approx £300 per month comfort zone to what I was originally paying which is a lot of money. So I am going to keep an eye on the markets/election/BOE lots of factors really and hopefully nip in there whenever I feel the increases are starting could be in months or years who knows?? But at the moment I think we have time on our hands to sit back and watch and pocket my £300. Do you think I have the right idea ????

nesssie1702

The OP is on an interest only deal, which means that none of the capital you've borrowed has been paid off. You might want to think about moving to a repayment mortgage, where you're paying off the capital as well as the interest.

When you revert to the SVR, will this be on a repayment basis?

fin170703

No, the mortgage will still be on an interest only term but the overpayments will be around £300 which in afect should start paying the house off. I'm actually going to pay around £1000 a month while the interest rate stays low.

I appreciate that if the rate should rise then I would/could be in a position where I wouldn't be paying anything off again.

Halifax were very helpful indeed and gave a me a list of options. I spent a good day yesterday research mortgages and feel far more comfortable in making a decision now.

I'm going to stay on the Halifax's SVR and monitor it for a while, as I'm currently paying around 6% the lower SVR payments will mean an overpament each month'

The deals that are available to me dont hold as many benefits as the SVR while its low and I can always go onto a deal at a later date if I feel I want more stability.

Opinions ?

lisa2905

Oh sorry did not explain that bit I am not on interest only I am already on repayment!!