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Am I stuck with this mortgage?
carolinep1
Posts: 31 Forumite
Sorry, first time post so if I do anything wrong, apologies.
We were in a situation about 18months ago whereby we had a lot of c/card debt and my DH was self employed so we had to go via a mortgage 'packaging' company and did a self cert mortgage. Got really stung on fees etc., but that's another story.
Our mortgage is with SPML just gone up again and we are paying £775.00 per month on £112,000 interest only :eek: . There are penalty payments for paying the mortgage off for first 5 years (they go down each year).
DH then got an 'employed' position for 18 months and has just gone self employed again. I have been in same job for 8 years. I really want to 'get back on the high st' with my mortgage and also get on a repayment one.
DH is on target to earn in excess of £25K in next 12 months, I earn £15K plus we get tax credits (don't know if this makes a difference). Our property is worth about £150K, we are both 39.
My question is am I stuck with this 8% interest rate until the penalty period is over or could I get a cheaper deal elsewhere and maybe save on repayments what I will pay in penalites?
Hope this makes sense.
We were in a situation about 18months ago whereby we had a lot of c/card debt and my DH was self employed so we had to go via a mortgage 'packaging' company and did a self cert mortgage. Got really stung on fees etc., but that's another story.
Our mortgage is with SPML just gone up again and we are paying £775.00 per month on £112,000 interest only :eek: . There are penalty payments for paying the mortgage off for first 5 years (they go down each year).
DH then got an 'employed' position for 18 months and has just gone self employed again. I have been in same job for 8 years. I really want to 'get back on the high st' with my mortgage and also get on a repayment one.
DH is on target to earn in excess of £25K in next 12 months, I earn £15K plus we get tax credits (don't know if this makes a difference). Our property is worth about £150K, we are both 39.
My question is am I stuck with this 8% interest rate until the penalty period is over or could I get a cheaper deal elsewhere and maybe save on repayments what I will pay in penalites?
Hope this makes sense.
0
Comments
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You are not stuck with it if you pay the penalty. However, you need to consider the cost of getting out against the saving and see what comes out cheapest.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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