General Advice Please.

Newbee77

Good Afternoon All,

I was after a little bit of advice if you can assist?

I have an mortgage with NRAM and am currently on their SVR (my fixed term ended June 08). I am overpaying, but only by £75 a month. My LTV is 88%.

I have a credit card (£3,500) and a loan (£12,000 to pay off the Ex from the mortgage). Savings £1,500.

My question is that I work 2 jobs, am coping fine now just a little concerned if rates go up. How will a 5% rate rise affect my NRAM SVR - will it go up to 9.79%?

I am just wonder if I am doing the right thing by keeping a house?

Thank you.

betmunch

Your interest rate is set by the clever people at NRAM. It may go up when the Base rate goes up, but doesnt have to. Also, it doesnt have to change by the same amount as the base rate changes.

You could get a letter on monday saying its changing, or it may never change in the next 25 years.

I very much doubt this info helps you, but to sum up, your rate is likely to go up in future, however when, and how much is at the whim of NRAM.

Thrugelmir

I would tackle the credit card debt first rather than overpay your mortgage.

Rates are not expected to rise to 5% in the foreseeable future. So I wouldn't even think along those lines.

Sounds if you are slowly making progress. Stick with it. Over time the situation will become more manageable.

betmunch

Thrugelmir wrote: »

Stick with it. Over time the situation will become more manageable.

Seconded!!!