higher salary, better remortgage?

withPeace · 16 January 2011 at 3:20PM

Hi Folks

I've recently started a new job this year and was wondering whether I can leverage that to improve my mortgage?

My current mortgage was taken out in 2007, it is interest only as that was the only type of mortgage I could get with my salary back then (18k).

Lender is A&L
Mortgage is 121k
House was purchased for 125k
Currently on their SVR which is 4.99%

I am now earning 39k a year (0started my new job this month). I would like to change it to repayment so I can actually start chipping away at it. I would also like to fix it perhaps.

Would appreciate advice on how best to go about doing this.

cheers,
wp

opinions4u · 16 January 2011 at 3:26PM

I'm not aware of any lender that offers a preferential rate for a higher salary.

dimbo61 · 16 January 2011 at 3:35PM

As you have little if any equity you could ask your lender if you can make capital repayments and start reducing the debt.

Engeroosi · 16 January 2011 at 4:32PM

See if you can just overpay on the current mortgage without incurring fees. If you can then do so, otherwise put the money you can afford to overpay into ISA and savings until you are able to overpay without incurring fees.