Advice please

sarahh112

Hi

I currently have a £127,000 HSBC Home Start mortgage and £15,000 equity release (both interest only) which is due to switch over from interest only to repayment in October. I think the APR I signed up for is about 5.9%.

My partner has just moved in together and we were looking to remortage to clear some outstanding student debts I have, release a little more equity and add him to the mortgage.

My query is should I wait until October to remortgage (as I will have to pay a 1% redemption fee to HSBC otherwise) or just get on with it in case the interest rates rise between now and October.

The house is worth approx £225,000 if other house prices in our area are anything to go by.

Any advise would be greatly appreciated.:A

UK007BullDog

You need to do the maths.
The early redemption fee plus any exit fees added up.

If staying with same lender you might incur a booking fee for the new deal.
If changing lender you have extra costs like solicitor, surveyor, booking fees.

So you need to check the costs of paying up early to the costs of getting a new deal. Would it be worth it to switch?

Also do you actually have equity in your property to release funds as required? Does your and your partners income be enough to pay off the increased mortgage?

You would need to speak to your lender and see what they can offer you and maybe even see a broker. Even if the interest rises 1% until October you might be better off staying put. But you have to do your figures to see if its worth it.