Mortgage Dilemma

jetman_2

Hi

I am not the most 'mortgage savvy' person, and would appreciate any advice. I currently have an Intelligent Finance variable rate mortgage with payments of £321 per month (5.95% interest.) I would like to try and get payments to under £300, but still keep the total cost in consideration.

I looked at First Active but they will only lend up to 95%, and I don't have enough for a deposit. Are there any other options as attractive as First Active without the deposit (I have about £1200 savings)?

I have read that interest rates will probably go up again in the Summer. Is it conceivable they will continue to rise, and maybe then I should start looking at a fixed rate?

Thanks for any ideas in advance.

payless

If already with IF
its a remortgage
the difference between the house value ( current) and required mortgage is the "deposit"

no need for extra cash input - unless you actually already owe more than 95% of its current value.


That may open more doors- as better deals usually found below 90% LTV

Sarahsaver

This is of interest to me, as my income is CTC ans a pension, i'm 34 and i have just been awarded the house i live in outright as a financial settlement with the ex. His name is still on the mortgage. Does whats already been said mean that i could get a mortgage based on the house itself being the deposit? Or are there sharks just out there waiting to catch me. I would like to reduce payments which are at around 450 pcm with an endowment on top.

payless

sarah

even before one takes into account the income type-

Bit confused- you say you have been awarded "outright", but then imply he's still on mortgage( is it joint) , and that you are paying £X pm

so assume you don't mean outright ( or not at least yet)

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Sarahsaver

I do the actual house is mine it belongs to me, but his name is on the mortgage. On the land registry the entry will now be listed under my name only. He's on the mortgage because if i took his name off it would cost too much at present, and there is a waiver to exempt him from having any financial liability (grrr)

payless

you might find asking existing lender for a lower rate easier than swap.