Advice needed - Should we fix now or wait?

Wee_L

My husband and I have 2 mortgages with the Nationwide (we ported one when we moved house just over 2 years ago). The purchase price of our house was £235,000 and is a new build property. The balance on the ported mortgage is £118,612 (fixed rate ended so on base rate of 2.5%) and our other mortgage is £70,004 (fixed rate of 5.95% ending in October 2011). My queries are as follows:

• Should we wait until our fixed rate comes to an end and then look at combining and fixing both mortgages at the same time so that we only have one mortgage?
• Given that house prices have fallen, will we need to take the fact that our house may be worth less than we paid for it into account and therefore have a higher LTV? (we have made some improvements in terms of the garden and some fixtures and fittings, but the same house built later in the development was sold for less).

Thanks in advance :A,
Lorna

beecher2

It is probably a good idea to wait until October - overpay as much as you can in the meantime. Your LTV may well be a problem when it comes to looking for a new deal - ask Nationwide what they can offer you closer to October.

Wee_L

That's what I was thinking - good to have it confirmed. Thanks.

TrickyDicky101

Do the two mortgages have different terms? Be aware that if you combine the two then you will also be taking out only the one term on the combined mortgage. Depending on what your term(s) currently are this could then mean you paying more/less per month than you currently are (irrespective of what your new interest rate would be).