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Is it worth remortgaging?
no1gymbunny
Posts: 391 Forumite
I took out a 100% residential mortgage with Bristol & West in 2007 to purchase my flat. It was a 2 year fixed rate which has now gone onto a variable - currently 4.49% and I'm paying £739/month.
B&W were taken over by Bank of Ireland. I'm now renting the flat out with the bank's permission. That said, there's supposed to be a £199/year admin fee for the privilege of me renting it out, but they've never chased me for it.
The rent doesn't cover the mortgage, plus the (not brilliant) management company charges seem to go up every year. It's £68/month now.
Recently had my annual mortgage statement through and it'll cost £126,339 to redeem with a penalty of £195 on top of that. The market value is approx £130k. Is it worth me looking into remortgaging in the hope of getting a better deal and avoiding the fear of getting chased for that admin fee?
B&W were taken over by Bank of Ireland. I'm now renting the flat out with the bank's permission. That said, there's supposed to be a £199/year admin fee for the privilege of me renting it out, but they've never chased me for it.
The rent doesn't cover the mortgage, plus the (not brilliant) management company charges seem to go up every year. It's £68/month now.
Recently had my annual mortgage statement through and it'll cost £126,339 to redeem with a penalty of £195 on top of that. The market value is approx £130k. Is it worth me looking into remortgaging in the hope of getting a better deal and avoiding the fear of getting chased for that admin fee?
Getting older is inevitable, growing up is optional :rotfl:
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Comments
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I'm confused - how have you only repaid 2.x% of the equity in c. 7 years?
According to your figures, your LTV is something like 98%. You'll be lucky to get any mortgage for that much I suspect.
I'd speak to a fee free whole of market mortgage broker and see what they can do for you. I suspect it won't be much if your figures are correct.0 -
I suspect you may not be able to remortgage if your equity figure is correct. Your rental income doesnt cover the existing mortgage then you are left with:
1. stick with what you have.
2. sell the property.
You dont mention how much you paid for the place initially - has it gone down in value since purchase?
MCInitial mortgage (Dec 2012) £108,000 3.84%APR MF date Jan 2038
Mortgage remaining £68285
Daily interest £4.28
2017 MFW #14 £3746.90/£10,0000 -
Thanks both. I paid £140k for it in 2007. It was a 100% interest only mortgage. At the end of the 2 year fixed rate, I switched it to capital & repayment.
I didn't think it'd be worth it really. I'm just looking at ways to try and reduce my outgoings and this was one of the options.Getting older is inevitable, growing up is optional :rotfl:0 -
Personally? I'd sell.
You're losing money paying to maintain an asset that has depreciated in value over a 7-8 year period.0 -
I would sell as well. Particularly if you have no intention of returning to the property. Cut your losses.0
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