Best options moving forward?

daveh85

With interest rates set to rise and my two year deal coming to an end with Nationwide I'm interested in looking at alternatives.

My details are as follows.

Age - 22
Salary - 35k
Mortgage - 160k
Property Value - 210k
Term outstanding - 23yrs
Rent from second room - 450/month

Right now I am on a guaranteur mortgage with my father, however would like to take him off if possible.

I'm tempted to look at reducing the term (if I can with my current salary and requirments) and also removing my father. I guess with the current uncertainty I'd like to look at a fixed term (10 or 25yr).

Does anyone have any recommendations for my situation?

thanks!

CHIHUAHUA

Hi - have you looked at moneysupermarket.com for comparisons?

daveh85

I did yes, and I got the impression this was good?

10 Year Fixed Rate up to and including 31 July 2017 [Online Mortgage]
Gross Rate (%) The overall cost for comparison is APR (%) MAX
Loan To Value (%) Special Incentives:
5.54 6.2 90 No Higher Lending Charge.
10% capital repayments are allowed each year without penalty.
Reverts to BBR + 0.95%

Early Repayment Charge Early Repayment Charge Applies Until Home Insurance Required Until Completion Fee
Tapered charges of 6/6/5/5/5/5/4/4/3/2 % of the amount redeemed. 31/07/2017 None Up to £500,000: £849
Over £500,000: By negotiation



That said, I was hoping to gather people's thoughts and recommendations.

Regards, Dave

CHIHUAHUA

mmmm - 10 years is a long time to be tied in don't you think? :eek:

also have a look at fool.co.uk

JoeK_3

Dave, you are considering a mortgage on excess of 4.60 x salary.

Do be careful here, as what you are contemplating is risky. Taking your father off as guarantor will certainly put up the interest rate charged by the lender. Further to this, you are searching for the best-fixed rates without checking the income multiples that the lender will accept.

Your situation is a classic, "buyer beware" situation.

In my opinion, you should seek professional advice from a whole of market mortgage broker before you go any further with your quest!

JoeK

kingkano

I think 10yrs might be a long time for you to fix Dave. At 22 you don't know what life will bring for you over the next 10yrs. A g/f, wife, baby, new job in a different location. All these could mean you paying a big penalty to get out of your mortgage.....

Also as Joe says, while some lenders would do the salary multiple, it is a risk and I doubt Nationwide would (they generally do 4 or so I believe). Try to find a broker as suggested who can go through the options with you. I did this just recently and it did help!