Clueless newcomer - remortgage or sell up?

ThePinkDahlia

Hi there,

I am so totally clueless about mortgages so ay input would be gratefully received. At the moment we are living in a property worth £165,000-169,000. We have two mortgages, the first is £127,000 owing (4.99% for 25yrs) we have 4 months left of the 5 yr fixed term. We also have a secoond mortgage for £10,000 tracker around 6.5% which is hugely worrying how much it is going up every month!! But we do have the option to pay this off early, although presently have no spare funds to do so but had some great advice on budgetiing on another thread.

Now that we have to get a new mortgage and the monthly outgoings will get bigger, I am starting to think about selling the house, having mad thoughts like living in a caravan, may be buying abroad or building one. It is a scary thought that we will be left with negative equity when already really struggling to keep up with our mortgage payments (total £786 per month).

Any advice on switching? I saw that the nationawide offset mortgage, is that advisable?

aloiseb

You should probably read Martin's Remortgaging Guide on this site: it's very good and clear like all his advice....and personally I don't like to click links in forums in case they haven't been vetted by the MSE team.

Dont' worry, you don't have negative equity, if you only owe £137,000 on a property worth £165 000 (or more). It's not a huge amount of equity - £18,000 - but it's not a minus figure, so it's not negative equity.

Unless you think there is a danger that your property has gone below £137,000 in value - or will go below? Have you had a flood nearby?