18 months left - when to negotiate a new mortgage deal

StartAfresh

I have an interest only mortgage of £68,000 and an additional amount of £18,000 which is repayment (ends in about 10 years I think)

Both are on a low tracker 0.75 above base so I am only paying just over £200 a month.

I will leave the £18,000 to run but was wondering when the best time would be to renegotiate a new deal for the £68,000. That deal ends in about 18 months.

I know I will have to transfer to a repayment for that as well which isn't a problem.

Should I stay on the current great rate and renegotiate in about a years time, or would I get a better deal if I tried to move my mortgage now?

The house is currently worth around £150k so even though I have debts hopefully re-mortgaging shouldn't be a problem.

I plan to get my £22k debts down to under £10k in the next 12 months.

Thanks.

dimbo61

" get a better deal if I tried to move my mortgage now? "
The words Not a Hope In HELL come to mind!
0.75% above base so you are paying 1.25% on £86,000
Work hard at clearing you other more expensive debts first and wait until the last month or two of your existing deal before looking for another deal and even then LOOK at what deals your current lender has for existing customers

StartAfresh

Thanks dimbo61.

I realise I won't get a better deal than the one I have for now. But just wondering if, say over 15 years, it would pay to switch now, rather than wait.

Being on a really good rate for 18 months and then say 6% for 13.5 years may be worse than being on a rate of say 3% for the next 15 years.

Hope that makes sense

dimbo61

Any ERC,s if you leave the tracker early?
There are some very good 4/5 and even 10 year fixes IF and this is the BIG IF you will not be moving home in the next 5/10 years?
We are on a tracker ( offset) and would have to pay £1000 if we move lenders before March 2017.
Rates will NOT be 6% in 18 months or the S**T will hit the fan for hundreds of thousands of families in the UK

StartAfresh

No ERC's.

Sounds as if I am better off sitting tight then, and looking in a years time.

Thanks

Thrugelmir

StartAfresh wrote: »

I plan to get my £22k debts down to under £10k in the next 12 months.

Your debts will be a hindrance if you wish to remortgage to a new lender. First port of call nearer the time will be to find out what your existing lender is willing to offer you. There's no negotiation when it comes to mortgages. You can only choose from what you are offered.