My mortgage options only owned for 1 year

Thrugelmir

Early steps on the property ladder are often the financially toughest. In time it will get easier. In the early years the majority of your monthly payments will consist of interest. So may well seem pointless. However every month the interest reduces. With slightly more capital being repaid. You've done well to buy at 24. Selling up may be a decision you regret in a few years time. If you can stick at it.

Atechnician

Thanks guys. I currently have a fixed term of 2 years and I'm 1 year in do I have to wait the full two years before I can remortgage onto a cheaper interest rate? I had to get a higher rate to get it I think I'm on 4.26% but never missed a payment and have 999 credit score so would like a cheaper interest rate as soon as possible

Thrugelmir

There'll be an exit penalty to terminate your existing mortgage product early. Contact your lender around 3 months before the term is up to see what options are available to you going forward. Hopefully there'll be a welcome reduction in interest rates which should make the situation easier.

Atechnician

Is it worth the penalty with the money you save on interest?

getmore4less

you can save money if the new rate is right and the fees are not too high.

You need to check what you can get, this will depend in part by your new LTV

For a year old deal you seem to be on quite a high rate.

which lender?

Atechnician

What's an LTV?

I'm with Santander they were only place willing to give me mortgage even though I had good credit score I wasn't on the electoral register which I am now. I failed on my first 4 applications and accepted on 5th financial advisor was shocked

Thrugelmir

Atechnician wrote: »

Is it worth the penalty with the money you save on interest?

With only a short period to run probably not worth switching. However you can book a new product before the existing one expires.

Dird

Where are you staying the other 10 months per year? Paying rent?

Atechnician

With girlfriend she live up there

Dird

Atechnician wrote: »

With girlfriend she live up there

In the same area as your house? Is she owning or renting? If renting get her to move in then your costs will drop down