Advice Needed

widget1520

Ok guys just looking for some general advice here.

Basically Im trying to save a bit of money as the person I was living with has moved out and I am no longer getting their rent money.

I am the home owner and have owned the home for almost 3 years now.

For the first 2 years I had a fixed rate mortgage at a horrible rate. After 2 years though I automatically went on to a variable rate at the same company saving around £180 a month

After talking to friends though they are paying a lot less (obviously) on interest only mortgages. Is it worth my while to look into this for the time being and do providers charge a fee for this?

Furthermore, am I tied down to a contract or can I look for other providers?

I am with Northern Rock by the way and paying up over 35 years

Thanks in advance

beecher2

They may be paying a lot less, but they're also not paying off any of the capital. As you're on a 35 year term you will have paid off very little capital as it is and depending on how much deposit you initially put down you could be in negative equity.

You're free to look at other providers, but are unlikely to get an interest only mortgage without showing how you plan to pay off the capital.