Yet another request for mortgage advice.

spitfire13

Fuzzbox, i never did think you were pleading poverty!

Other Debts: 2K loan (18.9%) - repymts - £126pm for 18 months. I would look to put the amount onto a 0% credit card as there are plenty around and some with 20 months 0%, 18.9% is high interest, set yourself the figure to pay it off over the 20 months avoiding the interest you currently pay!

Present financial happiness status: Nigh on 0%, scraping by (kids!). Simple, if your partner has the ability to work then make him work, that conservatory would get done quicker with the income he could bring in.

Spangled

thefuzzbox wrote: »

Hi,
Spangled - It's a lifetime tracker. Although base rate obviously not moved today, I'm feeling it may be time to fix anyhow. I just envisaged Nationwide saying no chance getting the extra at a mortgage rate, but instead of a loan at a whacking rate.

If it's a lifetime tracker, then I'd almost certainly try to keep that £55k on that rate. It's a superb rate that is unlikely to be beaten anytime in the next few years (IMHO of course). The best tracker you can get right now is around BoE+1.69% (give or take).

Given your £60k earnings, I'd would have thought that the Nationwide would be OK with you upping your borrowing by another £30k (with that £30k beign on a different rate to the tracker amount). Your income multiples seem to support that level of borrowing, assuming you don't have any defaults/late payments on your credit file. Have you tried phoning the Nationwide to see if they'd be amenable to that idea?

Whether borrowing an additional £30k or not on your mortgage is a good idea or not is another question and one I'll leave you to tussle with! Good luck.

PS Remember that even if the BoE rate goes up to 2%, your tracker pay rate won't increase because you have a 2% collar. It's only once the BoE rate hits 2.25% or more that you'll start paying more (and then only peanuts).

thefuzzbox

Once again, a huge amount of help from people, and appreciate the time taken to offer opinions.

Spangled - I will organise a session with the Nationwide to see what options they have available in respect of additional borrowing (incl. the tantalising prospect of keeping the 55K on the tracker rate I have).

Spitfire - you're right about the cc idea for cleaning up the loan. Also like the idea of attacking it bit by bit which seems easier from a cc perspective. Got a couple without a balance being carried so will see what options they have for balance transfers etc.

Also, it's my wife that doesn't work. We'd made the decision when firstborn arrived that where possible we would try and scrimp to avoid her needing to work. We're not as bad budget wise as the details might suggest! (e.g. the reason we have such a low mortgage is due to overpaying for a number of years prior to buying this place) - since uni, never owed a bean aside from mortgage until this loan just recently.

Same as others I guess, petrol/gas/electric have all had a bit of impact, and as kids get older, football club/beavers/swimming lessons all kick in, and we've probably been a little slower to react to the changing times than we'd have liked.

Thankyou all.

geoffky

If you play it right and get yourself organised them you have the chance to be very comfortably off ..You should have considerable savings and if you sort it out have a lifestyle free from debt....sit down and make a plan..then feel the relief that debt free brings..good luck..

madmish00

I don't know whether your lifetime tracker is the same as mine as you mention the 2% floor. Is this the actual floor or the temporary floor? (e.g mine is 0.18% above base but the floor is meant to be 2.75% but has been reduced to 2% since rates have been at 0.5%)

Before switching this onto a fix that will cost you more consider...
If the floor is in fact 2.75% as I suspect then you will not pay more than 3.14% on this part of the mortgage until rates rise above 2.75%. If you had the whole mortgage on the fixed rate you would be paying out more until rates went above 4.5% which I suspect is a good while off yet.

Why not take the additional borrowing on the fix if that is what you really want to do and then at least you have the certainty that this part of the mortgage will not go up. Budget for the 450/500pcm you mentioned and make overpayments to this amount. You always retain the option to switch and fix on the lifetime tracker so you could do that at a later date if necessary but I don't see the point in paying more now when you are on such a great rate.

Hope this all makes sense!

Edited to add: Myself and my partner both work and earn approximately 63k between us. Our current repayments are £341 per month. We have in the last 3 years managed to save 35k towards a bigger deposit in our new house.

asturdy2

nationwide usually put additional borrowing on a seperate mortgage so you should be able to keep your good rate. As others have said try to reduce your outgoings first and get a 0% card to pay off the loan.