Remortgaging and associated costs

M22saver

Hi there

I'm hoping someone will tell me I'm worrying too much here but I'm worried about remortgaging which I will have to do in quite some time - by 1 April 2008!!

Here is my situation...

I bought my flat (first time buyer) last April (2006) for £105k. It is now worth about £115k. I took out an interest-only mortgage on a fixed 2-year term at 4.79%. The aim was that the low monthly payments would enable me to buy furniture etc and that, in 2008, I would switch to a repayment mortgage.

The current rise in interest rates is leading me to believe that I can't afford one if I am still on my own next year. I have read the free remortgaging guide from this site and it says that you need to pay a whole heap of costs (arrangement fees etc.) when you take out a new mortgage.

My current mortgage is £94500. If I take out another interest-only because thats all I can afford ... does that mean I'll need to take out a higher mortgage amount as I'll need to add all these costs on top?

I never took all this mortgage renewal stuff into account when I bought the place. I'd appreciate any advice from anyone who is in the know or has 'been there'.

Many thanks

JoeK_3

Well, you were right, you are worrying to much as your potential remortgage is still a year away.

Who can tell what interest rates are going to be next year.

Not even Mr G Brown.

Relax and come back in March next year and our crystal ball will be a lot clearer.

JoeK