re-mortgage advice please!!

thendongofti

Hi,
My partner & I currently have an interest only mortgage from Abbey (for 106,260.00) and are thinking of trying to re-mortgage to find a better deal. We got interest only as 1. We are pretty broke and it seemed like the only way to get back on the property ladder, and 2. because we plan to stay in this property for less than 5 years and then move to a much cheaper area. Our repayments are currently £550 -odd, per month and we are just about ok with this. Since moving in a year ago our house value has risen from 110,000 to around 135,000 due to (mainly) renovations and modernisation that we've done to the place. I would like to switch to at least a part-repayment mortgage if possible, and just in case a. prices crash, & b. we decide to stay on longer than we'd planned, but I doubt we could afford anything with a repayment aspect. Any advice or ideas?
Also, does anyone know about 'The One Account' flexible mortgage? (Royal Bank of Scotland?) they keep posting me info, but I don't feel I know enough to avoid hidden pitfalls, or to compare deals accurately. I don't want to end up worse off!
Thanks very much for any help!!
Cheers!

martinhp

You could remortgage to a lender that has flexible options on your monthly payments. Set your mortgage up on interest only (should be able to get payments down to approx £430pm , on a sensible deal) then overpay by how ever much you can afford at the time (the overpayment can always be altered or stopped on a month to month basis)