Advice - I need to switch but not sure I can afford it

R_H_T

Hello

I'm trying very hard to reduce my monthly expenditure - I've completed an SOA in the past and have done what I can to reduce costs. My highest cost, like most, is the mortgage. I'm with the C&G right now on a fixed for 5 years @ 6.25%. I am just starting the third year.

My mortgage balance is £279,000
Monthly repayment is £1720

(House is worth approx £360,000)

(My salary is £60,000 (soon to be £61,800))

If I switch then the penalty is £14,000. (I'm not complaining as I knew this to start with!)

However, given that interest rates are so low if I switch to another lender, on a tacker/variable, I can make around a £350-400 saving per month (even by adding the £14k to my mortgage).

But, my other loans/commitments prevent me from finding another lender. I'd have to find someone willing to lend at least 5 times my salary.

My other loan commitments per month are:

HP: £290
C/cards: 350
Personal loan: 85

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Total: 725

So, with the penalty the new mortgage would be £293,000.

Can anyone plase advise on what I can do. I can change the HP agreement yet - already tried. What lenders might be willing to help? I don't think the C&G are interested in switching me (to one of their trackers) without me first paying the penalty. And, I understand their reasons.

Many thanks..!

beecher2

Even if you did find a lender willing to take you on, I can't see the maths adding up at all if you're paying out £14,000 to save £400/month, particularly as interest rates can only go up. I'd concentrate on tackling the loan commitments - can't you pay more off the credit cards to get rid of them?