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confused_and_baffled
Posts: 1 Newbie
Hello Experts
I'm new to this forum and have read quite a few of the postings below to check if there are any postings similar to my query but I can't seem to find anything similar.
Any advice or help anyone can offer will be much appreciated.
Here's the problem, I have a joint interest only mortgage with Alliance & Leicester on a property that's taken us over three years to renovate, the plan is to move in, in the early part of this year. A&L two year fixed rate ran out last year and we are now paying their standard rate. The value was the maximum we could borrow on our (then) salaries. My salary has since risen, but not that much. Although the value of the house has substantially increased.
To raise extra funds to complete the renovation we took out an interest only mortgage on the property we live in (yes our budget over ran). We had to go through a broker and eventually GMAC offered us the mortgage on an ability to pay, or something like it, basis rather than our income. Their two year fixed rate has also run out and we are now paying a whopping 7.24%.
I've had a quick look at some of the BS websites but setting up charges appear quite high.
As we plan to sell the house we're living in this year, after doing some decorating and pay off both mortgages, should we continue with the mortgages we currently have or is it worth shopping around for something cheaper. Bearing in mind the renovation has taken us a lot longer than expected although we are confident of moving in the next couple of months and due to the recent rise in interest rates it may take us a while to sell?
I'm also loathe to pay high early redemption charges is there any way round this?
I'm new to this forum and have read quite a few of the postings below to check if there are any postings similar to my query but I can't seem to find anything similar.
Any advice or help anyone can offer will be much appreciated.
Here's the problem, I have a joint interest only mortgage with Alliance & Leicester on a property that's taken us over three years to renovate, the plan is to move in, in the early part of this year. A&L two year fixed rate ran out last year and we are now paying their standard rate. The value was the maximum we could borrow on our (then) salaries. My salary has since risen, but not that much. Although the value of the house has substantially increased.
To raise extra funds to complete the renovation we took out an interest only mortgage on the property we live in (yes our budget over ran). We had to go through a broker and eventually GMAC offered us the mortgage on an ability to pay, or something like it, basis rather than our income. Their two year fixed rate has also run out and we are now paying a whopping 7.24%.
I've had a quick look at some of the BS websites but setting up charges appear quite high.
As we plan to sell the house we're living in this year, after doing some decorating and pay off both mortgages, should we continue with the mortgages we currently have or is it worth shopping around for something cheaper. Bearing in mind the renovation has taken us a lot longer than expected although we are confident of moving in the next couple of months and due to the recent rise in interest rates it may take us a while to sell?
I'm also loathe to pay high early redemption charges is there any way round this?
0
Comments
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You could consider ING Direct's mortgage - there are no arrangement fees, free valuation & legal fees and no redemption penalties.
Their standard variable rate is 5.14% according to the website, although I doubt that this takes account of the recent rate rise, which suggests that you'd probably end up paying 5.39%.
Even so, this is substantially cheaper than 7.24%.Mortgage Feb 2001 - £129,000
Mortgage July 2007 - £0
Original Mortgage Termination Date - Nov 2018
Mortgage Interest saved - £63790.60
ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)0 -
You seem to have gotten the Gmac on a self cert? As it is an adverse lender you might have to explain why you took that mortgage to the new lender.
It all depends on the incomes you have. It might be that you are stretched already. Why not sell the property you are in now and move in to the other and finish it off whilst living in it.
So far you have paid two mortgages but only lived in one house? That is quite a luxury.
If there are any early repayment charges and I expect the ones from Gmac to be quite hefty you would have to pay them. As you are breaking the contract. There is no way around it.
You can try to remortgage the renovated house but it will depend on your incomes if they will accept and all your outgoings.
I suggest you pull your credit records, P60, Last 3 months payslips, your two mortgage offers, a budget planner of all your outgoings and visit a whole of market broker who will do the maths for you and advise what you could do.0
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