Split Mortgage?

middo2905

Hello,

I have an interest-only mortgage with the Abbey on my property with an outstanding value of £168,720 which is split as follows:-

Loan 1 - £139,576 @ 5.49% variable - tied in until June 2007

Loan 2 - £29,144 @ 7.34% variable - no tie-in.

I spoke to Abbey yesterday regarding Loan 2, as the interest is high on this, but was advised that I might as well keep it until June and re-mortgage the total together then as set-up fees will cost as much as I'd save in the next 3 months.

My options are limited in June due to me earning approx. £30k plus £4k from letting my spare room, which automatically rules me out with over half the lenders.

Could anybody offer any advice?

Many Thanks, Steve

herbiesjp

Hi Steve

Welcome to the board

What is the property value?
What is the mortgage term left oustanding?
And do you have any other debts in the background i.e cards/loans/HP etc?

middo2905

Hi Herbie,

Thanks for the reply and the welcome. This really is the best website i have been on for such a long time!!

In answer to your questions

Property Value = £190,000.
Mortgage Term Remaining = As it's Interest Only it says 25 years.
Other Debts = None at all.

I bought the property in December, but took over the existing mortgage I had with my ex on a previous property to avoid paying £4k worth of Early Repayment Charges. The mortgage was changed from Repayment to Interest Only as I don't plan on being here long term.(ie, more than 2 years)

Regards, Steve