End Of Fixed Rate On Shared Ownership Mortgage

dannysmummy

Hi

I have a Nationwide mortgage on 25% of the property I live in and pay rent on the remaining 75%. The rate was fixed at 6.25% for two years and this term is up in May of this year.

I am hoping someone will be able to advise me as to what happens next. When I took out the mortgage it was all arranged by an independent financial adviser through the housing association and I haven't been able to re-contact them for advice. Is it possible to get into another fixed rate agreement? Is that even the best thing to do right now as interest rates are so low? Will my repayments go down when I come out of the fixed rate period in May? I have so many questions and I'm not sure how to get any answers to them

Please help!!

brit1234

Best to attend nationwide asap first and discuss options, interest rates are going up so you may not want to be on the svr for long.

dannysmummy

Thanks Brit,

I will definitely make an appt to see someone at Nationwide. Is it also worth seeing someone for some independent advice? Extra cash to pay the fees of a financial adviser is quite scarce at the moment and I don't want to pay someone if it's not worth it IYKWIM.

Thanks again.

brit1234

I would go would nationwide first and prehaps try something like money supermarket and prehaps visit some of the big lenders, they are all merged now so less leg work.

VIGILANT22

dannysmummy wrote: »

Thanks Brit,

I will definitely make an appt to see someone at Nationwide. Is it also worth seeing someone for some independent advice? Extra cash to pay the fees of a financial adviser is quite scarce at the moment and I don't want to pay someone if it's not worth it IYKWIM.

Thanks again.

You don't always have to pay an adviser...ask a friend/family/colleague if they have someone they can recommend.....The adviser will discuss your options as criteria has changed so much re shared ownership...also if you go to one bank they are limited in what they have to offer...also so many banks/ building society's offer a service "information only" which means you don't rcv advice....which means if the product is wrong the buck stops with you...with an adviser you have some come back.....

haras_nosirrah

Best thing to do is ring the housing association and see if they recommend a free financial advisor for new purchasers and try to talk to them. Now that rates and prices are lower have you concidered buying a higher share?

opinions4u

dannysmummy wrote: »

I have a Nationwide mortgage on 25% of the property I live in and pay rent on the remaining 75%. The rate was fixed at 6.25% for two years and this term is up in May of this year.

I am hoping someone will be able to advise me as to what happens next.

Quick phone call to Nationwide. There's a lot to be said for going on to their old SVR of 2.5% assuming it applies to your mortgage. Ring them and ask them.

Is it possible to get into another fixed rate agreement?

Yes, but there may be a large arrangement fee and the rate probably won't be cheap.

Is that even the best thing to do right now as interest rates are so low?

I'd go on to the SVR if it's 2.5%. You need to know if that's what it will be though. Make that call!

Will my repayments go down when I come out of the fixed rate period in May?

Almost certainly. I'd suggest that you use the reduction in payment to build up some savings or overpay the debt.

I have so many questions and I'm not sure how to get any answers to them

Servicing query about your current mortgage:

If you have a query regarding payments or your current statement amount, please call 08457 30 20 10. We are available; 24hrs, 7 days a week.

Make the call! But don't sign up for a deal without checking the thoughts of people on here first!