Advice needed

susysueb

Hi

This is my first post and I am not terribly clued in when it comes to mortgages so please be gentle.

We currently have a fixed rate mortgage @ 6.6% with the RBS (over 2 years) which is to come to an end on 31/01/10.
We have £154,839.93 outstanding and the mortgage is interest only.

We have just been given new figures for both interest only and repayment for fixed and variable rate.

The variable rate looks great as we would save over £300 per month and we are struggling at the moment but this obviously comes with risks.

As I am not very well up on this sort of thing please let me have your thoughts.

Cannon_Fodder

Is there an Early Repayment Charge on the current fixed deal?

You need rates to stay low for long enough to make up for that fee, as well as make some serious gains beyond that (and avoid any ERC that the new deal might have).

Depends how big the fee is...

Do you have a repayment vehicle, that is flexible, i.e. could be cashed in or reduce payments to it, to ease your struggling? If not, what is your plan to pay the capital? I suspect from the mention of repayment that there is neither.

If you indefinitely defer making payments to eat into capital, then instead of being "a bit of a struggle" for this stage of the mortgage term, its going to turn into "absolutely impossible to afford" for the last 5 or 10 years of the term...even £10 a month dent in the capital, now, can snowball, reduce future interest charged, and convert previous interest payments into cash available for reducing capital further.

The sooner that starts the sooner the snowball accelerates.

black_taxi_2

heres a great site

http://www.fsa.gov.uk/tables/fast_track.jsp

i saved myself over 2k looking at comparison tables

as well as interest rates look at fees and charges

black_taxi_2

you can find mortgages no/fees charges to switch with a varible rate with unlimited o/payments

black_taxi_2

i always go for a repayment mortgage also

like to know exact payments and date when it finishes

if i use OVER /PAYMENTS

dimbo61

What does your current mortgage do when the fix finishes ?
Check the paperwork as you may well go onto the SVR which will be a lot cheaper!
This will cost you nothing and save you money.
If you are struggling with an interest only mortgage HOW are you going to repay this mortgage ?