Do we stick with current lender or move??

mummyemmy

When we took out our current mortgage one of the things that sold it to us was the fact we would be able to take a mortgage payment holiday of up to 12 months.

We were hoping to do this from March for a year as I am due to go on maternity leave. Unfortunately after speaking with the lender today they cannot let us have a payment break as our loan to value is more than 80%.

This then got me thinking if we are paying too much on our current mortgage, well that's what others keep telling me!

Our current deal is 5.63% 5 year fixed rate until Jan 2013 - £132,000 - 26 years
We currently have £120,000 of this as interest only and pay £639.37 per month.

Current value of our house £155 - 160K.

If we were to leave our current lender we would need to pay a redemption fee of approx £131,500 + £90 admin charge + £4000 early repayment charge.

So we'd be looking at getting a new mortgage of approx £136K.

Our big problem is we need a LTV mortage of more than 80% (unless we were to stumble across £5K to bring it down to 80%)

I'd appreciate any advice - do we stay put with the current lender or are there better deals out there???

Thanks

Radiantsoul

I guess the problem is that you have only made very small capital repayments, I think most only let you borrow back the capital you have repaid.

I am not sure you will do better as the exit fee is large. Your rate is not especially high and I doubt you can beat it. I think you have no choice but to sit tight until the end of the fixed rate.

dimbo61

You have the security of a fixed deal for the next 3 years and you are also taking a year off work so I would stick with your current lender.
The rate is not that bad when you only put down a small deposit and have little equity in the property ( in the current housing market)
You are only paying £640 a month for a £132,000 mortgage
Enjoy the time off with your new baby