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5 year fixed rate, interest only expires March 2013 - what now?

Lord_Isleworth
Posts: 29 Forumite
Hi - as the title suggests we've had a five year fix rate (Santander 5.79%) interest only mortgage. We moved from London to Sussex and actually half way through and have overpaid maximum each year so £50k on the lifetime of this mortgage.
We now owe £165k on a property value of 350k so good LTV.
My question relates to rates on offer now. I read with interest the post about Santander offering terrible rates - they have done the same to us. i suspect even if we opened a 123 account that wouldn't change.
So could anyone offer some advice on who would take us now. ideally I'd love to do interest only but overpay each month. I earn 49k and my wife earns 10k. We have 13 years left on our mortgage and calculators show on a 3percent plus rate we are looking at £1200 so I would like to pay under £1k if possible with a young family. No others debts and 20 k savings. Any advice appreciated from you knowledgeable folk.
thanks
We now owe £165k on a property value of 350k so good LTV.
My question relates to rates on offer now. I read with interest the post about Santander offering terrible rates - they have done the same to us. i suspect even if we opened a 123 account that wouldn't change.
So could anyone offer some advice on who would take us now. ideally I'd love to do interest only but overpay each month. I earn 49k and my wife earns 10k. We have 13 years left on our mortgage and calculators show on a 3percent plus rate we are looking at £1200 so I would like to pay under £1k if possible with a young family. No others debts and 20 k savings. Any advice appreciated from you knowledgeable folk.
thanks
0
Comments
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Now the COOP are doing a 5 year fix at 2.79% and as you owe £165K if you take a 18 year term you would pay £972.56 per month for the next 5 years.
Owing £127.127 in 5 years time if you make no overpayments.
This is just an idea of what you could get NOT ADVICE!!!
We know nothing about age, job+ job safety, plans, pension ETC
Well done on overpaying so far as this puts you in a much better position than many.
Lenders are no longer happy to do IO so you may need to go repayment.
I also love offset mortgage and as you have savings have a look at the YBS offset deals !!! again NOT ADVICE0 -
Lord_Isleworth wrote: »So could anyone offer some advice on who would take us now. ideally I'd love to do interest only but overpay each month
Expect to move to repayment mortgage if you want a competitive rate.
Use some of your £20k savings to reduce the mortgage balance.0 -
We got an interest only 5 year fix at 3.19% after opening a 123 account. I couldn't believe it made such a difference, but it did! Previously they had told us- several times- that the SVR or a fix at 4.59 were our only options.0
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