Best Way Forward?

fooddestroyer

Hi.

Just had a call with NRAM, my mortgage provider to check out what a possible repayment plan would look like. With them 8 years.

Currently, I owe £141400 on a property worth around €111000. I am on an interest only special, SVR rate (at, I think 4.54%) paying around £540 per month.

They sent me a letter to say that repayment would be, over 27 years and 1 month, £756.32 per month, on 4.54% variable rate.

My question is, would it be better to make capital payments/overpayments, or, go onto this repayment deal offered, or even, try to do a fresh search for a new lender to port-over to (even though I could be considered a "mortgage prisoner" on negative equity!)

Confused about what to do, hope someone can help.:mad:

PS The property is in Northern Ireland and I current could afford to now (with new job) pay up to a maximum of £1000 per month (tight), but more comfortably £800 per month.

Thanks!

amnblog

You cannot re-mortgage if you are in negative equity.


It sounds like with your overpayment potential it will take you at least 7 or 8 years to pay back the excess mortgage over property value - even at that point you will 'own' nothing.


Get some one to one advice on this.

fooddestroyer

amnblog wrote: »

You cannot re-mortgage if you are in negative equity.


It sounds like with your overpayment potential it will take you at least 7 or 8 years to pay back the excess mortgage over property value - even at that point you will 'own' nothing.


Get some one to one advice on this.

Thanks

What is "one to one advice"?

Yorkie1

Independent mortgage advisor/broker.

dimbo61

Every month you are paying about £540 a month BUT not paying one penny off the debt !!
If you can please overpay each month by whatever you can afford if the total you can pay is £800 then do that it its £1000 then do that.
Many people are trapped in houses with large mortgages on Interest Only as they reach retirement so start overpaying TODAY

fooddestroyer

Thanks everyone.

Need to ponder this a tad more... Anyone else?

fooddestroyer

On this, does anyone know if NRAM has an overpayment limit? I mean, in keeping with SVR, am I limited to pay only a very amount or % over my set rate?

Thanks.

fooddestroyer

Yorkie1 wrote: »

Independent mortgage advisor/broker.

Where, in N.Ireland, could I find a reliable IMA? Or even, is there a popular phone number that I could call of some sort of debt/financial "helpline?

Thanks!!