mortgage advice

gary_pacha

Hi
i took the big leap 2 months ago and bought my first property.
it was quite a bit of hassel getting the mortgage, but got one eventually from the abbey. mortgage was for £118,000.00

However, i was wondering there are alot of much better deals out there, is there any chance that i could change so early into my agreement.

at the moment i am paying 457 a month, i have a friend living with me, so its not to bad, but i see deals out there with a very good intro offer, which would suit me.
my trail of thought is, use the money my mate gives me to cover the mortgage, and the money i was spending on the mortgage, throw at my loan, after doin some sums , i could clear the loan in 12 months, and for the remainder of the intro offer save the money, which will help when the intro offer ends, by that stage i may even let the property and hopefully buy another

regards

and thank you in advance for taking the time to repond

Cara79

Ok, a couple of things.

You only took out a mortgage 2 months ago, so undoubtedly I would have thought there would be massive penalties in redeeming this mortgage. You will need to consult your terms of the mortgage to find out. If you can find this info out and post it on here, we can look at whether it would be worth it.

Secondly, your friend is renting off you. Have you informed the mortgage company as I believe this is a legal obligation and your rate could well change. If this was taken into account when you took out the mortgage fair enough.

I am sure someone will be along soon with alot more info than me.

x

cattie

You would need to look at your mortgage offer documents to see what type of product you are on, ie, discount, fixed, tracker etc. Usually with these kind you are tied in for a certain length of time & have to pay hefty redemption penalties for redeeming the mortgage early.


Although you are seeing deals that sound very enticing, in reality these deals often have very sizeable arrangement fees, making them far less attractive in practice.

lovelldr

I'd like to know how you're managing to pay £457 a month, on a 118000 mortgage?! My previous mortgage was about 89000, and was paying more than you a month over 30 years, so how come yours is so cheap?

tonydee

lovelldr wrote:

I'd like to know how you're managing to pay £457 a month, on a 118000 mortgage?! My previous mortgage was about 89000, and was paying more than you a month over 30 years, so how come yours is so cheap?

40 year term maybe ? :eek:

Scott

Interest only, perhaps.

regularsaver1

your friend coulds be classed a lodger perhaps - which although the government encourage and allow you to earn £2k a year tax-free (I have heard) - you still need to put it in writing with your lender - every lender is different - if you live there and rent a room out they may see this as different to letting out as you are still present


you use the phrase "eventually got one" from Abbey - are you willing to go through that again to move lender? what was the reason for the eventually?