To remortgage or not to remortgage

PhoenixB

Just wanted a quickie bit of advice really, our mortgage fixed rate is up in Feb 2011 and we are wondering if it will be better to stay on the SVR with Santander or fix it again????



Difficult to call I know, we really want to stay with Santander as with the consolidation loan with Nemo attached to the house its such a nightmare and not to mention costly to keep moving to different lenders. But we have a number of loans and a credit card too,



Car loan with Santander £10625 over 60months started April 2010

Personal Loan with Santander £9000 over 24months started August 2010

Consolidation with Nemo £25000 over 300months started November 2008

Credit card with Santander £3300 limit, bout £1700 used



Not sure what to do really, we are waiting on some money that was left to us in a will, so once we receive that we want to pay off one of the loans, more likely to be the personal loan, which would help and the credit card will be paid off and closed down in the next couple of months too, which will just leave us with the consolidation and the car loan



Should we just let it ride for the time being and go to the SVR till we have paid down some of this stuff and cross fingers that the mortgage rate doesn't rise too much, then look at a fixed rate then, or are we in risk of not getting a good fixed rate if we wait too long

originalmiscellany

I personally (and I'm not an expert) would say:
5 months time = plenty of time to remortgage (taking you to Feb 2011) - but, I think you have bigger issues to deal with:

a

If you think interest rates are going to go up, then fix now. I'm personally waiting, with the option to fix should I feel rates are creeping up.

b

However, the interest rate on your mortgage (SVR maybe 4-5%) will be nothing in comparison to the amount you owe in interest on the almost £46k you have on loans.

I would clear them as fast as possible -

are you able to tell us what the interest rate is on these? You effectively have a second mortgage (25k loan over 300 months), so clear those first, before worrying about your mortgage.

That's just my opinion, and I'm sure other opinions will be added...

dimbo61

OH MY GOD
you must be paying over £1000 a month in repayments to the loans people and the CC debt ( minmum repayment)
Then you have the mortgage on top.
I hope you get a large sum in the will
I also bet you have little equity in your home ? ie less than 15%
If you can take the 5 year fix and clear the personnel loan and the car loan ( hence the 60 months)
You need to look at your spending and income so get over to the debt free board ASAP

getmore4less

Why do you keep borrowing money?

Mortgage is the least of your problems if you are spending more than you earn.

Why £20k extra this years alone?

debt free wanabee is the board to be posting on.

leveller2911

Seems naive to have borrowed a further £20k since April 2010 when knowing the fixed rate is up in February.Like Getmore4 posted post on the DFW board...