7.11% mortgage please help

part76

Hi to all you wonderfull people on this message board :j . This is my first ever post even though i have been reading theese pages for a while now. Imust tell you all i really know nothing about mortgages as you will find out.

Anyway here goes .I brought an ex council house for £70k at the time 01/04/2005 i was self employed and had been for two years i took advice from a mortgage advisor and the best mortgage deal they could come up with was from a company called GMAC it was a self cert . The first year was discounted at 5.11% which equalled payments of 11 payments of £416.65 and 289 payments of £500.74 totalling £150.192.01 to be precise :eek:

so since the 01/04/06 i hve been paying £500.74 per month.

in june of 2005 my business partner was told he had ms so we folded the company with no debts and i got a job as a courier fine i now have a stable income have held this job for 15 months no ccjs or bad credit.

have just looked at my mortgage and have some early repayment fees

:mad: :eek:

1- 12 months £4229.70

13- 24 months £3524.75

25 - 36 months £2819.80

37 - 300 months 1 months intrest £417.68


this is a repayment mortgage

the 5.11% was variable and so is the 7.11%:eek:

only just beginig to understand this mortgage stuff since finding this site:rolleyes:

the mortgage is over 25 years and says will be paying back £2.13 for every
£1.00 borrowed 7.3 % APR. 2.25% above the london interbank offered rate.

Question is is it worth swapping now and paying the reddemtion fees or stick it out i really could do with lowering the monthly payments but dont know what kind of mortgage im looking for do i need a remortgage or just to swap lenders. when i brought the house for £70.000 it was valued at around £105.000 without work done. since then it has been fully overhalled I.E:

full rewire new windows roof done full central heating every room replastered
blockpaved drive must be worth around £115.00 £120.000 now

last statment i had from gmac said i owe around £68.000.

Thanks for reading this thread i know its long but im thick:T :eek: :A

any help would be gratefully recived.

hi there just an update got the dreaded inflation rise letter today intrest has gone from 7.11% to 7.24%.

surley there i someone on here who can help me with this dilema

GUMPO

7.11% is massive. Now that you have a stable income and are not self employed you should be able to beat that by at least 2% which if you borrow 68K will save around £1400 in the first year alone. As to wether you change who you borrow with I would think that your current company would be more specialist and tailored towards self certs so you will find a better deal on the high street.

I am writing as a fairly well informed layman and know for a fact that there will be posts to follow from the clever people on this site that will be a lot more help. If I could suggest one thing though, print out the mortgage guide from the main page. I did and found it really helpfull.

:beer:

part76

hi mate thanks for replying so quickly. thanks for your advice will do.
supprising how much better i feel that i have taken the first step to find help

once again many thanks:beer: :j

lifechanging

Don't feel "thick" asking questions you think may be obvious to the rest of us. My role here is to ask the most stupid questions, so you have nothing to worry about

My own mortgage is with GMAC - one of few options for us risk taking entrepreneur types! My 3 year tie in ends in June 2007 so I'll be switching then, if not paying the whole thing off!

Good luck - you'll get great advice here.

comping_cat

I have a self cert mortgage, but my rate is only 4.99%, fixed for 5 years, so good rates are out there!!!!
How many months into your mortgage are you at the moment? Depending on what the redemption figure is, will prob depend on whether its worth moving now, or waiting until the figure is smaller!!!!

bud-miser

With whom, Catherine?

lotto-dreamer

Bud-miser,

I note that GMAC is mentioned twice here- and when a friend was enquiring about remortgaging recently she was also advised GMAC for self cert by a mortgage broker (5.19% I think) - she then decided not to remortgage so no further info -but GMAC mortgages definitely cater for self cert.

Hope this helps.

halloweenqueen_2

So if you switch mortgages you will be paying a hell of a fee?
It may still work out cheaper in the long run to get shot of this mortgage even with the fees?
Good luck - hope it goes well.

begbeer

I took out my mortgage with GMAC in May this year, and in August they sold it to North Yorkshire Mortgage Company, same rates but different terms and conditions one of which is they charge me £50 everytime I make a overpayment!

Joe_Bloggs

@begbeer
Write/email the fsa if you have any complaints. There are FSA rules that relate to FSA regulated mortgage contracts. The interpretation of their rules and regulations are beyond me. Read and re-read the original paperwork that you signed.
J_B.

comping_cat

bud-miser wrote:

With whom, Catherine?

My mortgage is with the Northern Rock, and is fixed for 5 years (i liked the idea of knowing what i would be paying and thought the rate of 4.99% was very good) and allows unlimited overpayments, with no extra fee. I also got £1000 cash back, which would only need to be repayed if i remortgaged within 3 years, not the full 5, and this covered all their extra fees.