Mortgage help please

princess23

We are in our final year of a fixed rate (3.09%) which ends Sept next year. We have 20K on credit cards which we are paying off extra to try and get as much paid off as possible between now and then but realise there will still be a sizeable debt left. We are obviously concerned this will hinder our chances of a good mortgage rate but don't want to add the debt to the mortgage as inheritance will pay off the mortgage in the future. My question is would it be worth us leaving our fixed rate mortgage now (we would have to pay £1400) to possibly get a good deal or would you continue paying for the remainder of the last year fixed and how would the credit card affect our chances. Thank you for any help you could offer.

Edi81

your £20k debt may be an issue. How much is it relative to your income and the value of the property. Without more information it's difficult to say how much it will affect you.

Debtslayer

How much is property worth?
How much is remaining of your mortgage?
What are your total annual incomes?

princess23

Thank you for your reply. In answer to your questions property worth approx 300K to 330k joint income £70k remaining mortgage 135k .

YHM

Plenty of equity and a credit card balance that is not inappropriate in relation to your income.

You should really speak to a broker to assess the saving you would make by remortgaging now. Realistically at your LTV you should be expecting early 1% on 2 Year Fixed Rates, which could enable you to recover the ERC in the next year.