7.4% fixed for 5 years coming to an end

dl5543

Hi, in 2009 we bought our first house - the only mortgage we could get was with Natwest and that was fixed for five years at 7.4% (eek!)

In September we are coming to the end of the five years and I just wondered what happens? Will it automatically go down? Sorry this is all new to me!

Thanks

amnblog

Check your original offer from Nat West. Details of what happens after the fixed rate will be in sections 4 & 6

lee111s

What's the lenders SVR?

How much deposit did you put down?

How much did you borrow and how much (realistically) is the property now worth?

Whatw as the reason for only being able to get a mortgage with suh a rate? Bad credit?

Depending on how your file now looks you should be a le to remortgage to a far lower rate of interest.

dl5543

We bought the house for £95,000 (was on the market at £110,000) and had to put down a 20% deposit.

Similar properties on the street are going for £105,000 now.

We didn't really have a credit history to speak of as it was our first home and the market was shocking at the time so that was one of the only options we could take!

I'm hoping it will go down in September - but will check out original offer from NatWest

Thanks for your help.

amnblog

the SVR at the time was 4%

jonathan_1983

I've come to the end of my fixed term with Natwest and the SVR is 4%.

I've changed lender to the Post Office (Bank of Ireland). I did it online and so far so good. I've had the valuation done and it's come in at £106,000 (purchased for £90,000 two years ago). This takes me to roughly 75% LTV now which I am happy with.

Basically, I will go from paying £518 a month to £405 with the Post Office. It's a 5 year fixed rate, no product fees, valuation and solicitor fees included in the offer. I'm no expert but I am guessing that there will be better deals out there compared to what you are on now.

lee111s

jonathan_1983 wrote: »

I've come to the end of my fixed term with Natwest and the SVR is 4%.

I've changed lender to the Post Office (Bank of Ireland). I did it online and so far so good. I've had the valuation done and it's come in at £106,000 (purchased for £90,000 two years ago). This takes me to roughly 75% LTV now which I am happy with.

Basically, I will go from paying £518 a month to £405 with the Post Office. It's a 5 year fixed rate, no product fees, valuation and solicitor fees included in the offer. I'm no expert but I am guessing that there will be better deals out there compared to what you are on now.

If you can afford the £518 you were paying then reduce the term of your loan and keep the payment the same! Will take yeara off your mortgage. Remember it's not a bill like you utilities

MaccGaz

Your payments should reduce considerably. Interest rates will probably start going up again next year, so it might be worth you going for another fixed rate for a few years.

It sounds like you'll have a 75% LTV so you should be able to get a rate of around 3% - which will be a nice boost for you!

jonathan_1983

lee111s wrote: »

If you can afford the £518 you were paying then reduce the term of your loan and keep the payment the same! Will take yeara off your mortgage. Remember it's not a bill like you utilities

Ha I know, I will try but my new Golf has arrived today! Hello more debt!

Hughesy84

dl5543 wrote: »

Hi, in 2009 we bought our first house - the only mortgage we could get was with Natwest and that was fixed for five years at 7.4% (eek!)

In September we are coming to the end of the five years and I just wondered what happens? Will it automatically go down? Sorry this is all new to me!

Thanks

IF it doesnt, then simply switch it...

You should be able to get a 75% mortgage of around 3.25% if you have a good credit history

dl5543

Thanks everyone - your advice is much appreciated