10 Yr Fixed Rate Ends April - Stepchange Debt

socks_uk

Our 10 year fixed rate (5.88%) ends in April so I'm guessing the monthly payments will fall UNLESS the talk of interest rates rising happens soon.

Balance £56,401
Current rate 5.88% (Nationwide)
Monthly payments £527
House purchased £114,500 (2006)
House value £132,000 (Zoopla website)

The problem is (apart from starting a 10 year fixed rate just before the rates went down as low as it is now!) is that my husband's finances have gone t*ts up and is now on a debt management programme with Stepchange.

I guess I'm wondering if there is any point in bothering to try and apply for another fixed rate because of me thinking...

a) will we be rejected due to my husband's zero credit rating?

b) if we try to apply for a new fixed rate, and are declined, will we be able to just stay on the base rate or be forced to sell the house (pay back the mortgage)?

Maybe I'm 'over-worrying' but with talk of the interest rate rising I need to start thinking of our options. I was hoping that when the 5.88% fixed rate ended the monthly payments would reduce but we would continue to pay £527 so the extra money would overpay the mortgage and we'd pay it off quicker.

Any advice greatly appreciated!

Dandytf

If the mortgage is in your name, then swap online to an existing morgage rate from Natwide upto 90 days before your 10yr fix ends.

I believe if you don’t change the term or amount there shouldn’t be any probs.

socks_uk

Dandytf wrote: »

If the mortgage is in your name

Unfortunately it's a joint mortgage (Tenants in Common - 75% mine & 25% his).
I owned a terraced house without a mortgage before meeting him so we were advised to buy our bungalow as tenants in common.

ACG

Can you not just switch products with nationwide?
It might not be the absolute cheapest option, but Nationwide tend to be there or there abouts a lot of the time.

dimbo61

http://www.nationwide.co.uk/products/mortgages/existing-customer-switching/mortgage-rates


Hi I have had a look on the Nationwide website above and put in your details as Value of property £132,000 mortgage outstanding £56,400 and term 15 years ???
Now its up to you which one to chose but the 5 year fix at 2.14% with NO FEE looks good IF and ONLY IF you have no plans to move ????

You also get £100 cashback

Now the 5 year deal means the mortgage would be £366.58 a month which saves you £160 each month.
Maybe a good idea to overpay that amount every month !!!

Thrugelmir

If you apply on line then the DMP shouldn't be issue. Hopefully a new product will free up some money to speed up repayment of the DMP.

socks_uk

The only way we'll be moving is if the undertakers do it!

Well thank you all for your help! I guess I need to wait until January so I avoid the early repayment fees but it's good to start thinking ahead!

getmore4less

With 12-13 years left I would seriously consider the lowest rate and high payment to get the debt down.

needs a full review of finances if there is a dmp floating about.


Nationwide retention deals are probably going to be fine.

What is the follow on rate?