85% LTV Remortgage

Marple4848

I am on the standard variable rate wth Northern Rock at present...our house is worth approx £215000 and we have outstanding mortgage of £181000...the outstanding amount is split 50/50 repayment and interest only.
Do I try and sign up to a long term fxed rate mortgage now on a full repayment basis or sit tight and see what happens?
I am fortunate enought to draw a penson in 9 years of around £150k lump sum and £14k per year ( I`ll be 52 then ) and we don`t plan to move house agan before then.
Any advice greatly appreciated.

madeupname1

The decision may be made for you. I am not sure that there are that many fixed rate mortgages on offer at a LTV of 85% and if there are, for example with your current lender, the interest rate is likely to be very expensive - much more expensive than sitting at the SVR, at least for while. If I were you I would look at what is available first and then come to a decision. Good luck.

dimbo61

Not allowed to give advice only opinions but please if you can overpay as much as possible for the next 9 years.You do not want to be using your lump sum to clear you mortgage when you hit 52. You will still have a 15/16 year wait for your state pension.There are some good long term fixes YBS 5 year 5.69% and overpay!

Marple4848

dimbo61 wrote: »

Not allowed to give advice only opinions but please if you can overpay as much as possible for the next 9 years.You do not want to be using your lump sum to clear you mortgage when you hit 52. You will still have a 15/16 year wait for your state pension.There are some good long term fixes YBS 5 year 5.69% and overpay!

Dimbo thanks for advice........YBS also do 10 year fixed...as we dont intend moving what would your opinion be as opposed the 5 year fixed ??

getmore4less

dimbo61 wrote: »

Not allowed to give advice only opinions but please if you can overpay as much as possible for the next 9 years.You do not want to be using your lump sum to clear you mortgage when you hit 52. You will still have a 15/16 year wait for your state pension.There are some good long term fixes YBS 5 year 5.69% and overpay!

But if you do that you are stuck with a £150k to invest in 9 years time and it is difficult to protect any income from tax immediately

Might be better off filling the cash ISA's and having a significant portion protected from tax in 9 years time.

The total amount available, surplus in come and lump sum does not change.

dimbo61

The 10 year fix has a LTV of 25% and you only have 15% at the moment.
I have an offset mortgage with YBS ( fixed for 5 years) and have been overpaying and saving into the offset every penny I can.
5 year offset fixed at 5.79% . fee £495
The SVR at NR is 4.79% now
So long term security and chance to build up savings in offset upto £16K !!!
Then overpay mortgage ( only my opinion GOOD LUCK)

dimbo61

The best paying cash ISA( A&L/ Santendar) is paying 3.5% if you had money to invest in ISA,s !!
Why pay 4.79% or even 5.79%( 5 year fix) or your mortgage and only earn 3.5% on your savings

dimbo61

You wont be able to draw your pension until you are 55 unless in a special job ( professional footballer )

Marple4848

dimbo61 wrote: »

You wont be able to draw your pension until you are 55 unless in a special job ( professional footballer )

Im a police officer and draw my pension from age 52 it becomes index linked at 55

Marple4848

dimbo61 wrote: »

The 10 year fix has a LTV of 25% and you only have 15% at the moment.
I have an offset mortgage with YBS ( fixed for 5 years) and have been overpaying and saving into the offset every penny I can.
5 year offset fixed at 5.79% . fee £495
The SVR at NR is 4.79% now
So long term security and chance to build up savings in offset upto £16K !!!
Then overpay mortgage ( only my opinion GOOD LUCK)

Enquired with YBS re 85% LTV 5 year fixed and although I earnt 47K last year and wife 26K they would only offer £137K.... very strange