Remortgage or not? Help?

ScottishMum

Hi there
Just looking for a bit of advice. My husband is currently has a mg with NR and fixed or tied in for 10 years. He is looking to remortgage to hopefully bring down the payments. The term is currently 18 years but hoping to extend it to 25 years meaning he would still on be 62 when the mg finished.

He initially had it at a 18 year term as when he took it out when he retired it would the same time as the mortgage finished.

Does anyone have any idea whether this is a good idea or not? We plan to speak to a ifa or mg broker to see what the options are.

I cannot be included in the mg as I have bad credit history at present.

Thankyou in advance.

getmore4less

need details of the mortgage to have any chance of knowing if it is worth switching.

beecher2

If he's tied in for 10 years he will have to pay an Early Repayment Charge. Find out how much that is to start with.

Extending the term will obviously mean that the amount of interest to be paid increases quite substantially.

If you post what interest rate you're paying at the moment, how much the mortgage is for, how much the house is worth and what your husband's wage is, someone can give you a better idea.

ScottishMum

Thankyou for all your quick replies!

The MG is currently for £86000
Int Rate - 6.59%
from the paperwork it states that there would be a £4000 early repayment charge.
The house is currently valued at £90000

HTH
Thanks again

beecher2

mhairibramwell wrote: »

Thankyou for all your quick replies!

The MG is currently for £86000
Int Rate - 6.59%
from the paperwork it states that there would be a £4000 early repayment charge.
The house is currently valued at £90000

HTH
Thanks again

I'm afraid with that LTV, you've no way of remortgaging. If you have £4k to spare, overpay your mortgage, and keep overpaying it.

You could phone NR and ask if the term can be extended.