Should I remortgage?

matador04

Hello all

Just wanted a bit of advice about whether it's worth me switching mortgage provider, or if I have other options.

I must admit, I am a bit naive with regards to mortgages, so I may be missing something very obvious.

I bought a house in 2008 for £110k. Got a 90%, 25 year, 2 year fixed-rate mortgage through Chelsea just before the market went pear shaped.

I'm just wondering what to do now. I didn't do anything with the mortgage after the 2 year period and my interest rate is now 5.79%. I guess I owe around £88k and my monthly payments are about £680.

I don't have any particular issues with the repayments, but we've recently had a baby and my wife isn't going back to work, so if I can save anything it would be good.

Do you reckon it's worth looking for other providers? Or can I get a better rate with Chelsea themselves?

Anything else to consider?

billa_champion

I'd ring Chelsea first to see what they can offer then I'd look around on the web and also ring a whole-of-market mortgage broker to see what they have too. London and Country are very good. I got my first mortgage with them and also the subsequent switch to another lender after my fixed period was up. HTH

matador04

Great, thanks. Chelsea can put me on a new 2 year fixed term at 5.19%, which reduces the payments by about £50 a month.

I'm an idiot for not doing it sooner.

Spiggle

matador04 wrote: »

Great, thanks. Chelsea can put me on a new 2 year fixed term at 5.19%, which reduces the payments by about £50 a month.

I'm an idiot for not doing it sooner.

Depending on your credit staus, your income, and other factors you may be able to get an even better deal with another provider though.

All the best,
Spigs

matador04

Spiggle wrote: »

Depending on your credit staus, your income, and other factors you may be able to get an even better deal with another provider though.

Yes, I bet I could. But do you have loads of other costs if you switch provider, like valuations etc?

billa_champion

It really depends on the provider. When I moved, the product was free, in fact, as long as I used the new lender's legal team the legal costs were paid for AND I got £300 cashback!

opinions4u

I bought a house in 2008 for £110k

So how much is it worth today? A rather important question.

I guess I owe around £88k

Don't guess. How much do you owe?

Real figures help other poster give you real options.

getmore4less

house value?
Mortgage?
Income?
Other debt?