Mortgage advice please!!

bruceiow

Hi all,

We took out a five year fixed deal at 6.67% and that is expiring aug this year. We pay a few quid under 1k a month which is a stranglehold as in that timeframe 2 children came along!! It isn't unaffordable, just limits any other plans to small projects only.

Our mortgage deal was based on 88% mortgage. This was based on a purchase price of 178k and mortgage of 158.

I want to plan my next move before august. I would love to bring down the monthly amount down if possible, but I have no idea of the likelihood of that.

Any advice would be greatly appreciated.

Many thanks

John424

You are probably a bit ahead of the game to make mortgage plans for Aug, start a few months before Aug. Whats the value of your house now so as to ascertain LTV, what SVR do you revert to if you stay with your current lender?

Thrugelmir

Is your current mortgage interest only?

bruceiow

Current Market value is so tricky to judges nothing else on the road has sold recently that is similar in size or condition. We obviously bought before the Market went too mad. But prices were still high. In that time we have renovated throughout kitchen, double glazing all to a v high standard. I don't know how that would have affected value.

We don't have an interest only, I avoided that like the plague lol

theoretica

As John says, the first thing to do is pull out your original paperwork and see what rate you revert to when your 5 year fix is up. You don't have to change your mortgage and may decide you don't want to.

kingstreet

A couple of months before your deal ends you need to get your ducks lined up.

You need to establish;-

- an approximate value of the property
- a realistic figure for the settlement of your existing mortgage
- the "follow-on rate" which applies after your fix
- what "customer retention" products your lender will offer you instead.

Don't worry about it now. June is the time for this.