Remortgage advice needed

staffiecat

Hi there,

My 3yr fixed deal has just finished with A&L. They have valued my house based on halifax index and suggest that I have about 90% LTV.

I am now on their SVR at 4.99% with 22 years remaining on mortgage. My situation is that my husband is changing careers therefore I am main breadwinner. Current monthly payments are approx £850.00 and I could pay up to £1100.00 per month if necessary on my salary.

My options seem to be following:

1) A&L have offered me a new deal for 2.5 years fixed at 5.99%
2) Stay on SVR of 4.99%
3) Another bank would offer me 4.99% fixed for 2 years if my LTV was 85% which i believe it is. Costs are about £1200 if I did go down this route.

I am tempted to decrease the term of my mortgage to approximately 18 years to cut out some of the interest. This would make my payments approx £1034 with option 1. Option 2 would naturally be less (approx £940 pm) and option 3 would be same as option 2 but only if the valuation agrees with some valuations that estate agents did.

I wondered what anyone on the forum would do in this situation, particularly whether you feel reducing the term of my mortgage is a good way to try and overpay.

Any advice would be helpful, many thanks

_Andy_

staffiecat wrote: »

but only if the valuation agrees with some valuations that estate agents did.

Which is highly unlikely to happen

beecher2

I think everything said on this thread still holds true

https://forums.moneysavingexpert.com/discussion/comment/32020635#Comment_32020635