Mortgage help

brighthair

Ok I am very new to this so please bear with me

I have an apartment at the moment, with a mortgage, and my fixed rate is coming to an end and we need advice on what to do
It's a mortgage of about £108,000 and currently we pay £660 a month. The other important (I think!) thing is that there is 3 of us on the mortgage - me, Mum and Dad

any ideas on where to go or what to do?

_Andy_

Realistic property value?

brighthair

hm, now you've got me! Bought in Aug 2007 for 123,500. None of the other flats have sold since then (most are rented) so I can't find a recent property sale. They rent out for approx £600 a month?

brighthair

Maybe a description might help! 2 bed, 2 bathroom apartment, open plan living room and huge kitchen. Ground floor, garden (only one on the street with garden) and allocated parking. No real improvements done to it, bought off plan

opinions4u

Given the time you bought, I'd guess that the property is worth less than you paid. This Nationwide tool may help you to estimate value, but if it's a new build flat I would knock an extra 10% off any figure it gives you.

As such, I doubt you will be able to remortgage to a new lender with £108k of debt.

1) Who is your lender?
2) What is their SVR?
3) Who actually lives in the property?

brighthair

lender is Nationwide
Just me that lives in the property
whats an svr?

and I can't track down a mortgage statement at the moment so I can't say exactly what is left outstanding but in 2007, we paid £123,500 and took out the mortgage for £108,00. The rest was paid as deposit, and I seem to remember the rate was fixed around 5. something %

opinions4u

brighthair wrote: »

lender is Nationwide
Just me that lives in the property
whats an svr?

An SVR is a lender's standard variable rate. It's the rate that most customers go on to when their fixed rate expires. Nationwide's is just about as low as you can get - 2.5%!

If you do go on to this rate, which I would suggest is a good idea, then you could retain your payments at their current level and overpaying.

This will accelerate the reduction in your mortgage debt and also give you a cushion against rates rising in the future - which the will almost certainly do.

brighthair

opinions4u wrote: »

An SVR is a lender's standard variable rate. It's the rate that most customers go on to when their fixed rate expires. Nationwide's is just about as low as you can get - 2.5%!

If you do go on to this rate, which I would suggest is a good idea, then you could retain your payments at their current level and overpaying.

This will accelerate the reduction in your mortgage debt and also give you a cushion against rates rising in the future - which the will almost certainly do.

oh thats good then, and nice and easy too!

thank you

SimbaSimon

opinions4u wrote: »

An SVR is a lender's standard variable rate. It's the rate that most customers go on to when their fixed rate expires. Nationwide's is just about as low as you can get - 2.5%!

If you do go on to this rate, which I would suggest is a good idea, then you could retain your payments at their current level and overpaying.

This will accelerate the reduction in your mortgage debt and also give you a cushion against rates rising in the future - which the will almost certainly do.

Nothing more to add to this but its gotta be the best thing to do for now.

No fees to pay, a low rate, overpay and build up savings, its a win win situation.

getmore4less

With just you living there your parents need to watch out for CGT if prices start rising.

brighthair

getmore4less wrote: »

With just you living there your parents need to watch out for CGT if prices start rising.

for what?!