re-mortgage

Lewigreg081281

This might be straight forward just thought i'd check with you guys. Our current product comes to an end in April (with RBS) we have had a great deal in terms of our current deal being an 100% tracker mortgage but obviously this ends soon.

I have started to look around which is were the problem is as it was a 100% mortgage at the time and our low payments we currently only have 3% equity in the property. The deals we have so far are all with a £199 product fee:

2yr fixed 5.49% - £571 per month
5yr fixed 6% - £615

or we role onto the variable rate of 4% - £470 per month (no product fee obviously)

The property is worth more than we paid but we need to get it revalued by the bank to prove this and they are being cautious at the moment, so i think it's a risk having this done however if we did and it was valued to the correct sum we would get:

2yr fixed 4.29% - £490 per month
5yr fixed 5.29% - £557 per month

The third choice being to put 8k down increasing the equity if we did this (not that can at the moment) we can get the above but with a decrease in payments to around £50 less a month on each product.

I am guessing to just role onto the variable of 4% and a monthly payment of £470 and to just see what happens if the rate goes up dramatically then maybe switch to a product?

Are there any other variable rates lower than 4% this seems good?

over to you guy's....
:money:

Cannon_Fodder

Get it valued. This is, as you say, guesswork.

You don't want to wait for rates to shoot up, then get it valued and be disappointed and unprepared, and as a result end up on a worse deal than you planned.

Better to know now, while rates are low, to help you overpay/save - in case you need that equity boost.

If the valuation is positive, it will allow you to fix now. I'd go for the 5.29% 5yr Fix. Two years is too short.