remortage from interest only to repayment

amberrose_2

Hi, back in 2012 we finished a full and final IVA, in order to do so we had to remortgage to raise the funds and ended up with a sub credit mortgage lender....so all debts gone but bigger mortgage and no chance of moving for 6 years until the debt details had fallen off our credit file....which they all did 2 years ago.

The mortgage we got was interest only as we where told there was no point being ripped off on a high interest mortgage due to the debt credit file and to just let the 6 years pass then when our file was clear to change it over.

Our mortgage has been passed over to a few firms over the last 6 years...at present we are with Engage Credit....the term is 20 years...the amount left is £119000 and the house value is £140000...the rate is 2.87 monthly payment interest only is £281 pm and repayment will be £637pm.......i am not tied in to anything.

My question is this......do i stay with them and just swap the mortgage to repayment....no charges or costs

OR

Try and get a high street lender, maybe better deal, may be charges..


really don't know what to do for the best, just know i want to get back to paying my mortgage....im 42 years old.

Thank you in advance...xx

Thrugelmir

At the current time 2.87% is an extremely competitive rate. So take it and switch onto a repayment basis. In addition if you can afford to then make overpayments as well.

amberrose_2

Hi, thank you, thats what i was thinking....just something inside wanting a :known: lender but i guess it doesnt really matter...thank again x

Thrugelmir

All lenders are fully regulated. So shouldn't be an issue dealing with a lesser known name.

Annisele

The more well known lenders aren't immune from making stupid mistakes - a quick browse around this forum will show that. Less well known lenders do stupid things too (one thing all lenders have in common is that humans work for them), but I don't think smaller lenders are any more likely to mess up than larger ones.

dimbo61

Why not ring up your existing Lender and ask the question.
Hi we have an Interest Only mortgage with yourselves Account number !
Can we make regular overpayments on this mortgage ?
If answer is YES then set up direct debit for £350/400 extra every month and check every 6/12 months to see how much the debt is decreasing.
If you can afford more then increase the DD
Very Money saving and Martin would agree