End of Fixed Term crippling us

dozzer1975

[FONT=Verdana,sans-serif]I own a property in the UK but I live in Dubai.

We have come to the end of our 2 year fixed rate and our payment has risen from 550 pounds to 760 pounds and is crippling us.

We have decided to sell the house. Is there anything we can do while we are waiting for the house to sell. Like remortgaging on a fixed rate with no penalties?

Please, your advise is in desperate need.

Thanks
[/FONT]

EdInvestor

If you are on repayment you could switch to interest only.

MarkyMarkD

You aren't going to get a short-term, fixed, buy-to-let mortgage.

I presume that you are letting it, and that you've got a BTL mortgage OR notified the lender that you are letting?

dozzer1975

I am with the Abbey and they knew I was renting it out but didn't change my mortgage to buy to let. My tenants have moved out now and I want to sell fast. I don't want a buy to let mortgage, just a fixed mortgage with no penalties if I sell within a few months. Is this possible?

danm

some lenders are doing flexible discount loans with no tie-in's or early redemptions.

if you are selling shortly then you need to take into account cost of up-front fees etc which have gone up dramatically over the last year or so

have a look at an on-line search engines best-buy tables, somthing like moneysupermarket should give you an idea of the sort of product i'm talking about

lynnexxxo

Could you not knock a couple fo thousand of the asking price if the prospective buyers will complete the purchase quickly - that would save you having to remortgage - which is unlikely to be cheap!

EdInvestor

You could also extend the mortgage term, which would bring down the monthly payments.No doubt the lenders are doing plenty of these at the moment.

eek

EdInvestor wrote: »

You could also extend the mortgage term, which would bring down the monthly payments.No doubt the lenders are doing plenty of these at the moment.

Increasing the term to 40 years will only knock £100 a month off the bill (oh and add another £118,800 to the total amount that has to be repaid.

MarkyMarkD

If you are no longer letting and intend to sell asap, I would suggest either staying with Abbey and asking what product switches they will let you have (preferably with no fee and no tie-ins - the rate isn't really THAT important over the very short-term) or switching to the ING Direct Tracker mortgage which also has no fees at all.


The fact that you are non-resident may not help your case - but Abbey wouldn't credit score you for a product switch which may again sway things in their favour.