I need a new mortgage deal - please help!

dunnc64_2

Hi all

I am currently tied into a mortgage deal with Natwest until Feb 2008 and on their variable rate mortgage. I took the mortgage out about 14 months ago, because I was contracting at the time, I was being refused mortgage left right and centre, so being naive I went for this.

To cut a long story short my mortgage payments have gone up about £110 within the last year, and I now realise that I need to be on a fixed rate mortgage, if it goes up another £100 in the next year I will really be struggling - Now my problems are listed below:

-There is an early redemption charge of £2200 to get out
-My outstanding balance on my mortgage is £123,000
-Natwest have said they can change us to their fixed rate of 5.8 for 2 years fixed with an early redemption of 3% of balance and I will need to pay the early redemption charge and add it onto the current mortgage, taking it to over £125,000!
-My girlfriend left her old job in a hotel to be the manager in a bar and has not received any official pay slips for the last 3 months, but I dont believe natwest will require these if I stick with them as I also bank with them and have never missed a payment. Would this be a problem getting a mortgage with another lender?

If anybody can help I would appreciate it. If it helps I earn £29 k and my girlfriend earns approx £15k and my house value is approx £145,000. Thanks in advanced.

JoeK_3

If I was you, I would stick it out with NW until FeB 2008 and then either look elsewhere or take a deal from them.

If interest rate did go up by £100 per month, you could convert to an interest only mortgage to reduce your outgoings.

£100 x 12 = £1200 only in the next twelve months. If you move now it's a certain £2,200

JoeK

dunnc64_2

Thanks for the reply JoeK. Is it possible for me to change to an interest only payment on the same deal without being charged the early redemption fee?

JoeK_3

Sure is

JoeK

dunnc64_2

Thanks, I may well do this tomorrow. Sorry to pester you JoeK but is there a particular way I should approach this, or simply just ask? I have found Natwest Mortgage Department really difficult to deal with over the past few months.

Ideally, I would like to keep it at interest only until the end of the mortgage in February then swap..would you recommend this and is this an option? Cheers

Chris

david29dpo

i agree with all the above, and yes, swop to interest only now, and remortgage in feb.