Mortgage advice please

loopyloulou_3

me and OH have an interest only mortgage with Bank of Scotland at the mo. We have had it for over three and a half years.

it is for £165,000 and we have had it as interest only variable over 25 years and we pay about £840 ish (I cant remember the exact figure) a month

with the interest rises etc i am thinking of changing it so that i know what i am paying each month.

My OH's credit rating is less than favourable to say the very least (and he is self employed) so I am reluctant to change mortgage company as I dont think we would be accepted. I am not sure what to do. I think we need to go down the road of fixed interest only.

Would Bank of Scotland check our credit score if we changed mortgages, but stayed with them?

I dont know what to do as I am SO worried about the int rates keep rising and eventually I will not be able to afford the mortgage we have.

Help!

loopyloulou_3

anyone able to help please?
im getting worried now and OH is worried about entering into another period where we would have a massive redemption fee if we decide to sell in the next couple of years.

herbiesjp

You should be able to ask BoS for a new fixed arte deal, and as long as no extra borrowing is requested they should not run a credit score.

HTH

loopyloulou_3

would i then be tied in for years with a high redemption figure?

herbiesjp

you would be tied in for the term of the fixed rate - so 2 year 5 years etc. You choose.

Going for a fixed rate is the only way of knowing each month what the mortgage amount will be with any certainty.

loopyloulou_3

i do really want to know what i will be paying each month.

will the redemption figure be less if i get a longer term, we had a 3 year min term last time and for year 1 the redemption was over £5k!

my OH will have heart failure if i tell him that it will be that high!

loopyloulou_3

also will the payments be less on a fixed term int only than on a variable int only?