new mortgage deal

kerrie294

We have currently had a mortgage for 3 years, it was fixed at 1.5% below the base rate and we are currently paying as little as we possibly can, we are about to renew our mortgage deal and have been offered the same deal, or a fixed rate deal with the mortgage company, due to the current economic climate we are unsure about whether to go for a fixed rate or a variable rate mortgage as it could go up by as much as £100 per month which we are not in a position to pay at the minute.

Also does anyone know if Progressive would give us a 25 year mortgage from scratch again (we currently have 22 years) to lower our repayments and if a bad credit history would prevent us getin a mortgage with another company when we have not defaulted on our mortgage since first taken

Thanks

dimbo61

You need to check you credit score with the credit agencies and see what bad debts, CCJ,s and any other late payments you have on it!
Have you paid all your bills with no late payments over the last 3 years?
Maybe a good time to see a "whole of market broker" to see what he/she can arrange.

Ashley3283

kerrie294 wrote: »

it was fixed at 1.5% below the base rate

I assume you mean 1.5% above base?

To change the term of the mortgage you'd probably need to reapply rather than keep your existing deal going.
There should be no reason why you can't reapply for a 25 or even 35 year mortgage, if you have missed any mortgage payments it would go against you though. Also you'd need to bear in mind is that 3 years ago the minimum deposit you had to put down for a mortgage was 5% (or even 0%, not sure though), however, most mortgage lenders are now asking for a minimum of 15% deposit for new applications.