mortgage is up for 1st renewal, owe 98.5k take it over shorter period?

vsumouse

hi guys, a little help is required here please,

i am out of my 2 yr fixed rate in september i borrowd 103k over 25yrs
my monthly repayments is around £630 now
i am willing to up the payments to around £730. do youi recomend that and how many years do you think it will reduce my mortgage over?
if anyone has any good providers they can point me in the right direction i would be gratefull.
also maybe some figures would be good as i kinda rushed into first mortgage without shopping round.

thatnks guys:o

save-a-lot

Hi

Try http://www.oneaccount.com/onev3/calculator/mortgage-shrinker-calculator.shtml

the calculator is good as a guide

save-a-lot

Hi

Also try

http://www.channel4.com/4money/mortgages/features/overpayment_calculator.html

stevenclarkuk

If it was me, I would keep the term/payments you have at the moment, but make regular overpayments to make up the difference and reduce the overall term.

If you do this then you'll have a bit more flexibility.. If things are tight one month you'll be OK because you havn't commited yourself to the £100.
You wouln't want to struggle and run the risk of miss a mortgage repayment.

Just make sure you provider allows overpayments..

Steven

comping_cat

I agree with stevenclarkuk, keep the mortgage the same and overpay as much as you can, when you can. I remortgaged last year with the Northern Rock. Kept my 28 year term (started at 30), fixed it for 5 years at 4.99% (im self employed so also had to self certificate, so thought that was a really good deal) and they allow unlimited overpayments, and if you ever need to 'borrow back' any overpayments, you can. So i now put any money i have (even small amounts, tomorrow im sending £21 into it) into my mortgage instead of savings, as i know if i ever need it, i can get it!!!!

Joe_Bloggs

@vsumous
I agree with getting a mortgage that allows small flexible overpayments. I would find getting a mortgage every two years very irritating.
£98.5K @ 5% over 276 months (23years) is £601.25 per month. Adding £100
overpayments would be 17y8 months and £130 would get 16y5 months. What is your loan to value situation ? The less this is the better in getting low rates. I hope you have checked your credit files as missing payments and mistakes, on your records, put lenders off.
Your current lender is the first port of call. Ask them to make you a better offer.
I rushed into my first mortgage too. I'm starting the second year of my second mortgage in two weeks. Just broke through £90K. Interest will take it above £90K in three weeks however.
J_B.

blackste

hi mate
it depends on how comfortable you are with the payments. im due to change my mortgage in a few months, and would prefer to reduce the term, but everyone is different. if you go to https://www.moneyfacts.co.uk they have a really good mortgage tool that allows you to look at how changing the term, can affect you payment. you can also look at differnt types of deals such as fixed, discount etc from loads of lenders. if you see something you like there is also a link on mse that allows you to apply for the deal online and recieve about 50 75% of the commission back rather than an advisor recieving it, but thats only if you feel confident about doing it.
hope this helps

Jorgan_2

Shop around for the best mortgage deal that allows you to make overpayments without penalty. Some mortgages look good, headline rate is low but there may be other costs you need to take into account, arrangement fees, valuation fees etc. It may be cheaper to go for a higher rate of interest repayment if the survey etc is cheaper. If you don't feel like surfing the internet, arrange to see a whole of market broker, they will be able to show you all the options & expalin the differences in each case.