HELP! Remortgage

nathana1

So i am going to remortgage once my 2 year fixed payment are up i borrowed £113,000 for 35 years through a broker due to been self employed and the bank not willing to lend hence the high interest, if i stay with this mortgage lender i will pay back £239,000 over the 35 years (i no ridiculous) that is why i will remortgage to the bank after my 2 year fixed is up, My question is will i have to pay off the remaining of the £239,000 when i remortgage or just whats left on the original loan ( £113,000) . I will have payed £3500 off after the 2 years leaving £235,500 or £109,500 what amount will i have to remortgage for ????? CAN SOMEONE PLEASE HELP THANKS

frazell

If you borrowed £113,000 on a repayment basis then the "mortgage" comprises of £113,000 capital plus £126,000 in interest, giving a total to repay at the end of the term as £239,000.

As you have been paying the mortgage for a few years now you will have paid some of the capital off... £3500 in your case, leaving £109,500 as the balance of the mortgage to move to another lender.

nathana1

excellent so i would only have to remortgage the capital and not the interest i was scared the value of the house wouldnt cover the £239,000 i understand it a'lot more now thank you

frazell

I'm sure the mortgage company would like you to pay them back all the interest on top, but no, just the overall capital.

Make sure you shop around for the best mortgage to suit you, just because you are self employed shouldn't restrict you too much, especially if you have 2-3 years account under your belt.

A good broker might a good idea to help you look at the best options available.

amnblog

you should definately use a broker.