Fixed term mortgage ending

aland1507

Hi All, My 5 year fixed term mortgage is coming to an end in December. My lack of knowledge on these matters is laughable. What will happen when my term ends. Currently I owe slightly more than my house is worth. My interest rate at the moment is 7.79% Im currently paying £560 a month. Will my payments go up or down? Any advice will be greatly recieved.

Many thanks,

Alan

opinions4u

Who is your lender?

What do your Key Facts documents say about your go to rate?

How much is your property worth?

How much remains owing on your mortgage?

myhouse_2

With an interest rate that bad, you can expect your IR to come down significantly to the lenders SVR which is likely around 4% assuming you haven't had money issues. Maybe a bit more if you have little equity in your house.

aland1507

My lender is Northern Rock. Currently I owe around 78,000 on my mortgage. House is worth around 75,000. Im really hoping my payments will come down. I had to change jobs a couple of years ago and the payments are a real struggle every month

opinions4u

aland1507 wrote: »

My lender is Northern Rock. Currently I owe around 78,000 on my mortgage. House is worth around 75,000. Im really hoping my payments will come down. I had to change jobs a couple of years ago and the payments are a real struggle every month

From memory your rate will drop to 4.79% variable.

I'd strongly suggest you carry on paying the same amount though. This will help to get you out of negative equity, open up potential remortgage options that could save you money in future years and allow you to cope with interest rate increases that are inevitable in future.

Good luck.