Mortgage Query

tece

I took out an A&L part repayment and part interest only mortage in 2005 when I last moved home. I was moving to a larger property thus wanting a repayment mortgage but already having three endowments on my mortgage at the time of the move.
The interest only portion of the mortgage was 36K and I have now overpaid in total by £50K due to two of the endowments maturing, savings and not reducing my monthly repayments.
The overpayment shows as a credit facility on my monthly mortgage statement and there is also a strapline that at the end of the mortgage term I will still owe 36K. I have contacted A&L and asked them to remove the strapline from my statement this fact as I no longer will and had queried this previously with a call centre agent and been told this would disappear. The last call centre agent that I spoke to said I would have to pay £50 to convert to a repayment mortgage for this to happen.
My query is will my mortgage reduce any sooner by paying this £50 and moving to an interest only mortgage or will I get the same end result by continuing as is and save myself this £50?
I'm posting here as each time I call A&L I get conflicting advise and realise this is due to the luck of the draw of who answers the phone.
I am also on their SVR of 4.990% owing just over £50K with a £295 redemption administration charge. Any advise either on a better deal that would outweigh the redemption charge?

opinions4u

There's no point in paying the £50 to switch to a repayment mortgage if you're already overpaying without penalty.

4.99% is a high SVR. See a broker about your remortgage options. It's likely that you could get a lower rate. How much do you owe, and what's the property worth?

www.moneyfacts.co.uk/mortgages will help you identify lower rates with other lenders too.

getmore4less

If you ahve decent LTV(which you must have) and income multiple is good you could probably get something under 2.5% payback less than a year.

If santander are as bad with mortgages as they are with other stuff then I would get out to somewhere like First Direct.

tece

Thanks opinions4u & getmore4less for your responses.
Not sure of the house value as bought at the top of the market we are in the East Midlands (paid 220K) and it will have dropped. We owe just over 50K so assume this is a good LTV and our combined income is just over this amount.
Do you know would we be able to overpay on a fixed mortgage this is what we would like to continue to do as aiming to be mortgage free within the next 7 to 8 years.

getmore4less

tece wrote: »

Thanks opinions4u & getmore4less for your responses.
Not sure of the house value as bought at the top of the market we are in the East Midlands (paid 220K) and it will have dropped. We owe just over 50K so assume this is a good LTV and our combined income is just over this amount.
Do you know would we be able to overpay on a fixed mortgage this is what we would like to continue to do as aiming to be mortgage free within the next 7 to 8 years.

LTV is fine(well under 50%) if joint salary arround £50k and a £50k mortgage then thats fine.

Any other debts or deafults in none then thats OK as well


Why fix and pay more? why not get a low cost tracker and over pay even more or even consider an offset and use savings 0% CC to stooze some of the mortgage away.

tece

Thanks getmore4less for the further advice.
I've no other debts and never defaulted.
I mentioned a fixed mortgage because I think I've read that the rates may start to go up again next year.
I will start and look at trackers and offset mortgages elsewhere as I would like to get away from A&L/Santander including my current account which I've held with them for getting on for 30 years since the Girobank days. I don't like some of the things that I've lost since the takeover by Santander.

dimbo61

Have a look at first direct and YBS as they both do offset trackers and offset fixed rate deals