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Mortgage costs/mortgage prisoner
col81
Posts: 338 Forumite
I have 3 defaults dropping off my file in may 21. I then want a repayment mortgage the house is worth £145k I owe £118k I earn £45k pa. I have no other debts. What is the payment likely to be? I pay £330 now interest only. Added to the title I have had a letter saying fca help people like me who are mortgage prisoners! I have done the online questionnaire it didnt provide any help
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Comments
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You can probably switch lenders. I dont think you are a Mortgage prisoner.
3 x 5 year old defaults should not be a deal breaker, but with 5 months to go it is probably worthwhile staying where you are.
The repayments will be dependent on the mortgage balance, term and interest rate - you can get a rough idea here - http://www.bbc.co.uk/homes/property/mortgagecalculator.shtmlI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
I am currently on 3.5 % above the libor rate which is 0. I may be better letting it roll on interest only at £330 and overpaying possibly0
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I dont think you will get significantly lower than 3.5% until they drop off. Once they do, we will probably be in a different world to where we are now. A lot will hopefully change in the next 5 months.
You should be looking at normal rates - whatever they may be in 5 months.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What are normal rates for someone like me? Thanks for help0
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About 2-2.5% at the minute.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Have a nice xmas thank you for advice0
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In the mean time look at what you would be paying on a repayment mortgage.
Use could use "whatsthecost"
Put in outstanding balance, say 25 years to bring you upto 67/68 years of age in you were born in 1981 ?
Say 2.5% interest rate and see what the figure work out.
Then overpay by that amount each month !
So current IO payment is £330 and repayment at 2.5% would be £830 each month just overpay by £500 a month till May.
You will by May know if you can afford a repayment mortgage0
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