want to get my head out of the sand

mumto2loves

Hi

I'm quite embarrassed to be writing this, but since finding mse a couple of months ago i have been reading all the different boards and its been making me think about our money in more depth. (or just thinking about it actually)
I have just dug out our 'mortgage file' from the vary back of the filing cabinet and our fixed term contract ran out august 2009:o Our payments since then have actually been lower than when we were fixed which is probably why I read the letter and thought oh thats good. file it.
Now the interest rate is going up I think we should maybe do something. (not that we've had any notifaction that our payments are going up - but i don't know if they'd tell us anyway!)

I keep reading people talking about their credit file / credit score. Is this something I need to look at before we see someone about re mortgaging? How do I look at it, and if I do look at it and its rubbish / poor is there anything I can do to change it anyway? Not that I think we've done anything wrong, we just have everything on dd and as far as I know we've not missed any payments for anything, no one has told us if we have, which i assume they would have?


I have credit cards that I don't use anymore, is it better to cancel them? would it 'look' better to a mortgage company if they were there unused or if they were not there at all?
sorry for all the questions, hope someone is willing to take the time to dig me out of the sand!:)

GMS

Take some time out to speak to a broker.

When you say the interest rate is going up do you mean your specific rate or you think in general?

Well maintained credit cards could help your credit scoring.

mumto2loves

Just the national/general rate.
I actually don't have a clue what i'm talking about
we're with abbey atm our rate is 4.240 (or thats what the last letter from them says anyway)

GMS

what do you owe on the mortgage?
What is the property worth?

mumto2loves

we owe £163 500, last year we had it valued by ea (but it didn't sell) at £210,000.

GMS

Possibility of cheaper rates but need to take in to account the fees.

Speak to Abbey and see what they could offer you.

Also speak to a broker, that way you have covered most angles

mumto2loves

so do you think we'd be better to just leave it as it is for now? with the general intrest rate going up, will it not mean our mortgage payments would go up big time? I just don't want to go to the bank say next month to find i've got no money because our payments have doubled or something and then its to late to get a good deal.
thanks for your thoughts btw

GMS

I would not like to say as I do not know you personal preferences.
However if you are worried about rising interest rates then you should look at the possibilities for fixing.

You do sem to have a genuine fear of rate rises so at least speak to somebody to see what is possible.

A broker should be able to tell you with a 20 minute phone call