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Help Please - change from Interest to Repayment

ggj171
ggj171 Posts: 1 Newbie
in Mortgages & endowments
Hi All,

I wonder if someone could give me some advice please? We have had an interest only mortgage for 5 years now as we have been renting our house out. We have not moved back into our house and our fixed rate mortgage has ended and now is variable.

We intend on staying in our house now and think it would be wise to change to a repayment mortgage and we have been told we can get a interest rate of 5.6 fixed for 3 years that is a 90% mortage.

Do you think this is a good deal? Is it a good idea to move fast to repayment fixed in this current climate?

Any advice and help would be appreciated.

Thanks very much for your time

Comments

  • jimjames
    jimjames Posts: 19,171 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    No that isn't a good deal. There are rates with Yorkshire being mentioned here that are 3.69% fixes for 5 years.

    For that rate you might as well be on base rate tracker as unlikely rates will rise that far in 3 years
    Remember the saying: if it looks too good to be true it almost certainly is.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    jimjames wrote: »
    No that isn't a good deal. There are rates with Yorkshire being mentioned here that are 3.69% fixes for 5 years.

    Not at 90% LTV
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You dont give the rate you are paying at the moment ? SVR
    Can you afford to change to repayment
    Why not save and overpay or save into a cash ISA
This discussion has been closed.
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