End of Mortgage deal?

Stomp_25

Ok need some help my halifax 2yr fixed rate of 4.69% will come to an end next month. The svr is 3.99% at present with halifax which is less per month than what I am paying now. As the inital mortgage was a shared equity for 35yrs only a number of lenders will be able to offer a new deal at 90%LTV:(. I have currently saved 5% of the interest free loan to pay back to developers and should be paid off fully in the next 2yrs. With this paid off the deals available will be greater and at much lower interest rates:j. Anyway do I stick with the svr and use this as savings to pay off loan? or make overpayments on mortgage? or take a fixed rate deal of 4.39% for 5yr? Thanks John

bigadaj

Obviously don't know your situation in detail but I'd be tempted to go onto variable rate and try and pay the loan off as soon as you can. I have never liked shared equity so if you can take control of the house soon then that removes one interested party. Only you and the mortgage lender to worry about then.

kingstreet

The process for remortgaging on shared equity can be onerous. If it's FirstBuy or HomeBuy Direct, you need to contact myfirsthome, the HomeBuy Agent which deals with post-sale issues on behalf of the HCA.

http://www.myfirsthome.org.uk/

If a builder's shared equity scheme was used, you need to contact them.

In either case, a deed of postponement will be needed to prevent the second charge being promoted to a first when the current mortgage is repaid by the new one.

Last time I tried to do this, the borrower got fed up with the requirements of the HCA and went back to his existing lender for a customer retention product as the rate wasn't that different to what we could get from the one other lender which would accept a remortgage on shared equity.