Remortgage or...??

pldd4

Hi,

I'm hoping someone can help me here,

My fixed rate period of 5% (£322.88 repayments) ends in August which jumps to 6.4%!!

The problem is my early repayment charge (approx £2000) is still in affect until August 2007

Is there anything i can do to save money or move etc, or just take it on the chin and pay the new increased rates at 6.4% (approx £390 repayments) for one year?

Thanks very much for anyhelp, this is the first time ive been in this situation,

Paul

Robert_Sterling

The higher mortgage payments will cost you about £1000.
The early redemption will cost you £2000.

pldd4

Robert_Sterling wrote:

The higher mortgage payments will cost you about £1000.
The early redemption will cost you £2000.

yep, correct.

So there is no way around it? Maybe chatting with the mortgage company to move to a new deal with them?

Thanks

pldd4

I think i'll change my existing mortgage to a Buy to Let which will do 2 things;
Allow me to rent out your existing property providing the rental income is greater than the mortgage payment.

I'd only allowed to have one residential mortgage so this will then allow me to take out another residental mortgage with my girlfriend to get a bigger property.

I would need to check with NRock about any costs involved but they shouldn't be much.


We are looking for a property max value of £150k.

My current outstanding mortgage is at about £63k, but i think my house is worth about £85k now (waiting for valuations).

Would it be possibly to release equity to pay for improvements on the new home if neccessary?

If so how does this work considering my situation with my NRock mortgage?

Any advice or comments people, its all new to me!??

Cheers,

Paul