Re-mortgage advice please.

dimbo61

You would be better to pay them off ! If you can between now and december
You dont give your income but lenders now have a much tougher lending policy
My own lender has been turning existing customers who want to borrow more due to new lending conditions, we are not talking big sums here perhaps enough to buy a new car

davemorton

Income is approx. 34K before tax, only my income counting towards the mortgage, and only in my name. So am I going to have problems to raise the mortgage, how many times your yearly wage are they willing to lend now, or is it not worked out like that?

Gary123456790

Hi,

You dont say how long you have remaining on your mortgage but to get some figures lets say there is 20 years left, that would make your repayment around £1000 a month.

To get back the £1290 in 11 months you need to reduce this by £117 a month. Playing around with the repayment calculator on HSBC (https://mortgages.hsbc.co.uk/repayment-calculator) shows you need to get to about 4.5% to make the repayments £885 which would get the £1290 back.

So anything at or above 4.5% isnt worth going for.

I was in the same position and just waited for the fixed rate to finish. You may think everyone is benefitting and you are not, but look at it this way - rates would have been high if not for the recession, so thanks to the recession you'll be saving money on a better rate once your fix is over.

Gary.