Help with Changing my mortgage

sallymycat

Hi
I am looking into changing my Mortgage for two reasons,

1: I would like to reduce my montley re-payments of £1,070 per month, its a repayment mortgage @ 5.890% fixed which ends on 31/07/12

The early repayment charge would be £3,485.
Then there are other cost, guessing a new house price valuation, new mortgage setting up cost etc etc.

I have about £163,000 remaining on my mortgage, with a charge of £40,000 to my brother for the depostite (none repayable at any perticular date)

I wish to increase my mortgage to about £185,000.

My property is worth £330,000

would it be worth my while to change and add money to my mortgage???

I will be useing this money to further inprove my home.

any thoughts

many thanks

BoGoF

Being only 9 months away from avoiding an ERC, I would question your timing. Your new repayment is going to have to be around £400 less a month to break even on the ERC alone.

Knowing details of your income would also be helpful, and I'm not sure if a new lender will like the 2nd charge on the property.

sallymycat

my timeing is because I wanted to extra cash for the home improvments etc.

The £400 to brake even would only be for the first year, then after I would be on a winner,

with 5.89 odd % that I am paying at the mo, I could do a lot better no???/

My income is self essertive at £45,000

BoGoF

"The £400 to brake even would only be for the first year, then after I would be on a winner"

That makes no sense, if you wait till next August you will save £3450

sallymycat

your only seeing the loss and not the gain.

I am paying a high interest rate right.
if I reduce this interest rate, yes it will cost me £3,500 odd, but I will proberly brake even for the first year as the new interest rates will be a lot less.
then after I will be on a winner

If I say as I am, yes I save the redemtion, But for the nine months left of my mortgage, I will be paying a very high rate. in turn costing me the same £3,500 in high interest costs.


Or am I missing something?????????

_Andy_

sallymycat wrote: »

my timeing is because I wanted to extra cash for the home improvments etc.

The £400 to brake even would only be for the first year, then after I would be on a winner,

with 5.89 odd % that I am paying at the mo, I could do a lot better no???/

My income is self essertive at £45,000

What is a 'self essertive' mortgage?

BoGoF

sallymycat wrote: »

your only seeing the loss and not the gain.

I am paying a high interest rate right.
if I reduce this interest rate, yes it will cost me £3,500 odd, but I will proberly brake even for the first year as the new interest rates will be a lot less.
then after I will be on a winner

If I say as I am, yes I save the redemtion, But for the nine months left of my mortgage, I will be paying a very high rate. in turn costing me the same £3,500 in high interest costs.


Or am I missing something?????????

What I'm saying is unless you can save that £3500 in 9 months then you would be better waiting until the ERC charge has expired before remortgaging.

And as Andy has said what is a "self-essertive mortgage"

getmore4less

sallymycat wrote: »

your only seeing the loss and not the gain.

I am paying a high interest rate right.
if I reduce this interest rate, yes it will cost me £3,500 odd, but I will proberly brake even for the first year as the new interest rates will be a lot less.
then after I will be on a winner

If I say as I am, yes I save the redemtion, But for the nine months left of my mortgage, I will be paying a very high rate. in turn costing me the same £3,500 in high interest costs.


Or am I missing something?????????

What rate does the current mortgage go to when the fix runs out?

It might be a good one that you lose if you remortage and could end up LOSING money long term not saving.

You need to recover the charges in the 9 months left.


Ask your current lender for a further advance to test if they will lend.

sallymycat

Self essertive, sorry people, I am dyslexic :mad:
I had to declair my salary, no paper work to back it up,
But hey, they lent me £180,000 on that, and for two years now I have been paying it with out a missed payment

good point to what my % reverts to.
From my 5.890 to there standard variable of 3.500% after the 31/07/12
so in real turms, start of August

we are only in mid september, so its only a few weeks sort of a hole year !!!!!!!!!!!!!!!!!!!!!!!

I would like to add, You guys will NEVER know how helpfull you are being :j:j:j
Being dyslexic makes the who papper/internet/reading/writing thing So much more of a challage, at times you just cant be bothered
so many thanks to you all :beer:

_Andy_

No self-certified mortgages are available any more, so you will need proof of income.

DannyboyMidlands

I think that you should just leave it alone. You will revert to 3.5% in August next year and to do anything sooner will cost you the £3.5k ERC so will probably wipe out any gain.

As Andy says, there are no self cert mortgages available any more so if you were a little bit creative with your income at the time you will struggle to borrow the same amount this time.