Northern Rock SVR Help

sternjohn662200

I have read through the posts but wanted a little more advice on what to do.

Currently our mortgage with northern rock runs out in oct of this year after taking out a 100% mortgage fixed for 5 years at 5.99% for £140,480. This means our mortgage is £800 a month which i doubt we could afford more than.

Our original aim was to sell the house and purchase a house up north but we are unsure of what are options are. We know that we will owe approx £133,600 at the end of the term.

Now from checking into the house value we would get approx £140,000 for the house based on similar houses sold in the last 6 months. This would leave us with approx £6400 less fees etc would need to come off this. We will have managed to save approx £2.5-3k by oct this year.

Now this would leave us with limited options for buying a house up north as we would only have approx a 5% deposit for a house at a similar price.

Are we better waiting a year, moving onto the SVR which is about 4.7% which would save us approx £110 a month. ( I doubt northern rock will offer us a mortgage). We would continue to pay the same amount so effectively over paying £110 a year and then hopefully the housing market improves.

My concerns are, will the SVR go up to 8% or something similar which i couldnt afford or am i better trying to get a 95% mortgage of which there are few but paying 6.49%. As i said at the moment my rate is 5.99%

Any advice would be appreciated. Im going to go see a financial advisor closer to the time but would like to mentally prepare myself as much as possible.

Thanks

Meeper

Stay in your current property and overpay your mortgage as much as possible to reduce the debt.

Thrugelmir

Meeper wrote: »

Stay in your current property and overpay your mortgage as much as possible to reduce the debt.

Second this view. You need to reduce your mortgage debt to obtain at least a 10% deposit level in the new property.

beecher2

If you're ready to move then an alternative is selling up and renting in the area you want to buy. If you can rent for less than £800, you'd be able to save more.