Help! We dont have a clue!

kellyloubeee

Mine and my bf mortgage is coming to and end in April and we dont know what to do. We have no knowledge when it comes to mortgages and thought we where doing the right thing getting on the property ladder.We have tried to look on the forum for people in a similar situation to us but we just feel confused .We would really appreciate it if you could help us with any advice!!Shall we get a new mortgage or stay with A&L?Will our payments be less ( we could really do with this right now)?

Our mortgage product is: A&L Plus 2 Year Fixed Rate 125% (started in April 2008) 25 years

Initial Interest Rate Payable: 7.190%

Mortgage Value: £80,750 and a fixed sum unsecured loan of £12,250.

Repayments: £587.73 (on secured loan) and £88.07 (unsecured)=Total £675.80.

In April it will change 1.99% above the bank of england base rate

I hope this is enough info

_Andy_

Hi Kelly

Realistically how much is your home worth?

kellyloubeee

2 years ago it was valued at £90,000, i have no clue poss £80-£85k?

_Andy_

OK as things stand then you're not going to be able to change mortgage provider. Currently you'll have a nice low SVR. Alternatively you could contact your existing lender to discuss any other options, e.g. fixed rates, if you wanted to.

VIGILANT22

This sounds like the Mortgage Plus A&L used to offer, if so this means you borrowed more than the value of the property...as your "125% "suggests....

Once your deal comes to an end your monthly payments could well drop, however if you consider the type of mortgage you have taken out you would do well to pay as much into this as you can afford ..reducing the unsecured part should be your priority...

kellyloubeee

Hi Andy,

Thanks for your reply. Does this mean our payments will go down if the base rate stays low?

kel