motgage switching help!!!!

dunc1n_2

Hey folks,

Hoping some of you guys can help me here. As I have no clue what-so-ever about mortgages and stuff.
I bought my flat in Oct 2007 and got a mortgage with Chelsea building society to pay it. My credit rating was not that great, so I ended up having to go with one where I was (and still am) paying around 6%.
I was locked into this mortgage until Oct 2010. I have never missed a mortgage payment yet and i am looking to switch from my current mortgage provider to one where I dont have to pay such a high percentage. The problem is, I have absolutely no idea where to look, what to look for and how to go about doing this!!!! Is it just a case of finding a provider that will offer me the lowest percentage (i.e. paying back less a month)?? And is it a massive hassle to do this??
Could someone please help me on where to start!!! :-(

Thanks in advance guys

Dunc1n

CloudCuckooLand

What is your property now worth, compared to the oustanding mortgage?

Unless you have 10%, or more, equity you will likely struggle to move anywhere else. Or the funds to bridge the potential gap.

Ask the current lender what new deals they have, while you find out if you can shop around.

dunc1n_2

Well I bought the property for 94k.
I got a mortgage for 60k, as I paid 34k upfront (deposit or whatever!?).
I got the flat valued at 100k just 1 month after moving in. I "presume" its now worth just over 100k (maybe 105k-110k).

I have no idea how much I have left to pay, but I could find out from my mortgage provider.

Sorry, thats all the info i could give you guys. I am honestly completely clueless when it comes to all this.

Does the above numbers help with any advice???

Thanks again.

CloudCuckooLand

use www.houseprices.co.uk to find a similar property that recently sold in your area, and at what price...

or tell us where you are, 4 digits of postcode will do.

dunc1n_2

Im in aberdeen.
My postcode is AB11 6**.

Thanks for your help with this BTW. Its apreciated.

CloudCuckooLand

Hamish, stop trolling...

Engeroosi

If your fixed rate has come to an end, might be worth trying to find out what the rate is your paying now as it might have reverted to a much lower variable rate.

dunc1n_2

(Hamish, stop trolling...) eh?!?!?

I know that Im paying around 6% still, as I recently had a tennant move into that flat and I had inform my mortgage provider that I was leasing out the property, in which they told me that my rate will increase by .25% because of that (rip off), which increased it to 6.25%.

Could I just contact Chelsea and ask them if I could choose another deal (now that my 3 years is up), and try to get on a lower rate? Or will they just laugh at me! ha!

Thanks

Engeroosi

no harm in contacting your current mortgage providers but if you are now letting the property you would need a buy to let mortgage. these are usually higher rates of interest that residential mortgage. So you could find you are currently paying what you would be fixing anyway.

Renting as opposed tp living in it makes a big difference. Did you originaly buy the flat to rent out? This is all important information you have to let advisors know before they can give you relevant advice.

dunc1n_2

No, I bought the flat to live in, back in 2007, but I now live with my girlfriend. I just started letting out the property in Oct 2010.

Is 6% a bad rate at the moment or is it about average? I just think it seems awefully high?!

Cheers

Engeroosi

i am paying 6.29 but i fixed 2 years ago when this was the going rate. And I have another 3 to go!!!

For a buy to let you might not get much less but is still worth going to a mortgage advisor to see what they can do.