6.6% fixed rate ending Sept 10 - advice please!

PrincessJR

Hello All,

I know it is a few months away yet but I want to start learning more about our options. We took out a 3 year fixed rate mortgage with Future Mortgages in 2007. At the time we were offered a rather high rate of 6.6% (first time buyers with 95% mortgage).
When this ends in Sept, can anyone hazard a guess at what it may drop to roughly? (or is that impossible?) We have never missed a payment and so are good customers.

Does it tend to pay you to shop around a couple of months before the fixed rate comes to an end, or is it best to stay with our current provider? Incidently, since buying our hosue in 2007, it has gone down slightly in value (recession). We paid £159,950 and it is now probably worth around £145,000 so in negative equity. Will this mean we cant get another mortgage anywhere else?

Sorry for so many questions but I really need some inpartial advice before considering approaching banks etc...

(not sure if it matters but I earn £26k pa and my Husband earns £23k salary + £7k pa from freelance work), so £56k jointly.

Any advice appreciated

xxxx

Thrugelmir

If you are in negative equity. Best advice is to overpay your mortgage. As remortgaging is impossible under normal circumstances. Take a long term view of overpaying and eventually you'll get your heads above water.

beecher2

Yes overpay as much as you possibly can - keep paying what you're paying now, and more if you can.

Seems to be their SVR is some rate above LIBOR - phone them to find out what yours will go onto.