shared ownership re-mortgage

madlyn

bought my home 5 yrs ago on a part ownership basis, i'm buying 25%
fixed rate ended and due to personal circumstances i was unable to re-mortgage. now things have changed and i want to re-mortgage.
i have a mix of repayment and interst only at the moment, sounds strange but at the time it was the best option.
do i go back to the broker who arranged it last time,
go to my current lender and ask what they have to offer or look somewhere different myself? this option scares me a little as i dont want to be ripped off.

kingstreet

You ask your current lender what "customer retention" products it may be able to offer you.

You talk to a whole market broker about the options he can offer you.

You decide which is best, based on the status requirements, rate, fees and other costs and you proceed with the best option for you.

You will find it difficult to remortgage onto interest-only again and your current lender may squeeze you to get you off it, especially if you have no repayment vehicle to repay the interest-only element.

madlyn

if i can remortgage then i was hoping to change to a repaymrnt one, instead of a mix of interest only and repayment like i have now.
i have around £9000 on my interest only part at the moment, if remortgage am i right in thinking i will have to pay back the interest on this amount to get out of it?

kingstreet

No. You pay interest on a mortgage each month, whether it is interest-only, or repayment.

If your early repayment penalty period has ended, repayment of your mortgage may be subject only to a discharge fee mentioned in your key facts illustration or mortgage offer.

Mortgages do not work like loans, where the entire term's interest is added to the loan at the outset.