Advice please time to re mortgage?

clarerachel01

Hiya
Just a bit of advice, our 2 year fixed term mortgage has just ended, our payments have dropped down to a third of what we was paying which is ace :T
The problem being we are on an intrest only mortgage, is now a good time to try and find a repayment mortgage or would we be better holding back a bit ?
any advice would be greatful

CloudCuckooLand

Ask to keep your payments the same, so the excess can go as overpayments. (your lender may have Ts&Cs to limit/explain how this operates)

Getting a repayment needs to be tied to Fixing again, imo, otherwise you may get a shock when interest rates rise back to where they were.

dimbo61

You dont say what your new mortgage rate is but as you are now paying 1/3 your old payment I guess its 2.5% or lower
Now you will not find a fix that low so for the time being either build up the money saved into cash ISA,s paying more than your mortgage rate or overpay each month and reduce the mortgage debt.
If you do need the security of a fix then have a look round at whats available
bearing in mind that values of properties have dropped !!

opinions4u

clarerachel01 wrote: »

The problem being we are on an intrest only mortgage

Why? What, originally, was your plan to repay the debt?

is now a good time to try and find a repayment mortgage or would we be better holding back a bit ?

Who is your lender? What rate are you paying? How much do you owe? What is the property worth?

My gut instinct would be to ask your existing lender as to what their rules are for overpayments and also if there are any fees to transfer to repayment.

But if you are now on an exceptonally low rate, you may be better saving any increased payments in to an ISA or regular saver account - hence the questions I have asked above.

One way or the other you should ensure that you have the means to repay the debt, so the option to avoid is doing nothing.