Time to renegotiate mortgage - what to do??

rosscouk

Hi there,

We moved into our our second house nearly three years ago. We took our old mortgage with us, now worth about 125k, this is a mortgage on base rate + 2%, so we pay 2.5% a month, worth around £650. We then have a second part to the mortgage which we took on a 3 year fixed at 4.4% (this is the part coming to the end) this is worth about £310 per month. We pay £960 per month when totaled. The property is worth around 250 - 270K and we owe about £181k with 22 years left on the deal. Our LTV is just below 73%. We are currently with Nationwide.

So my question really is, what should I do next?

Should I look to tie us in to a longer new fix for both parts of the mortgage, this would give some financial stability? Or should I take a shorter deal on a better rate and then renegotiate when out LTV lowers?

Plus I need to remember interest rates will rise at some point.

So, a bit confused, any help or opinions gratefully accepted.

Thanks

dimbo61

So If I get this right you have a Mortgage Debt of £181,000 on a property worth £250/270K RIGHT?
You have £125K at a rate of 2% above the Boe rate so paying 2.5% right now.
You also have £56K at 4.4% which will go onto the SVR at 3.99% or BMR?
If you look at the Nationwide website and put in your details for existing customers it has a number of deals available.


http://www.nationwide.co.uk/products/mortgages/existing-customer-switching/mortgage-rates#xtab:existingcustomers-seeifyoucansave


Click on link above! SIMPLY just pick the deal you want OR Speak to a mortgage broker!


Nationwide have 2/3/4/5 and 10 year fixed deals PLUS 2/3 year tracker deals

Thrugelmir

rosscouk wrote: »

then renegotiate when out LTV lowers?

Lenders make offers not negotiate.

rosscouk

Thanks for the replies. Had a bit of an internet outage this end! I can't seem to get the link to work.

I have been on the nationwide website and they are 'offering' (see what I did there!!). They are offering a five year fixed, with no fee, for £937, which is about £20 less than we are paying now. I would lose the base rate, but I would gain some security. Seems quite tempting.

dimbo61

On your own figures you have about 75% LTV or just below which is good!
Now if you take the 5 year fix you will have 5 years security ( Are you planning to stay in the property? )
You will have also have paid another 5 years of mortgage payments so SHOULD! be at 60% LTV when you next look at remortgaging.
This depends on property prices on course!!!!

Thrugelmir

rosscouk wrote: »

They are offering a five year fixed, with no fee, for £937, which is about £20 less than we are paying now. I would lose the base rate, but I would gain some security. Seems quite tempting.

Why not just fix the second part of your mortgage? Giving up the guaranteed 2% above base rate element could be an expensive choice in the longer term.

If you are concerned with the potential impact of higher interest rates. Overpaying the mortgage and reducing the debt owed is the way forward.

getmore4less

Keep the base+2%.

Look for the best deal NW offer for the other bit and try to overpay if you are paying less.

I would consider the 3y discount tracker if you qualify