Remortgage and pay more?

Frog_3

1st post so please be patient.
I am a little confused about remortgaging and would appreciate some advice.
Two years ago i moved from an interest only with the Halifax to a repayment with the Northern Rock (4.49%) over a fixed two year period. The mortgage was initially for £90,000 and was increased to £215,000 one year ago when we moved house. The mortgage therefore still has 23years left to run. I have received paperwork from the N Rock offering me various options, all essentially based round a 2/3 year stepped interest plan (with and without arrangement fee) and a fixed two year plan at 5.55% which would see my payments increasing by about £200 per month.
As I am within an initial 3 year period I will also have to pay back £500 of the initial "help with costs" if I move from N Rock.

If I move to another lender though, I would not want to move the end date of my mortgage and so it would be over a 23 year term. As I have been paying my increased mortgage for 1yr and only decreased the capital sum by about £5000, because a lot of it is interest at first I guess, surely I will have to repay nearly the same capital sum but now over a proportionately shorter period?

I would appreciate some product advice as do not like the offers from N Rock and would like to move to a fixed (discounted) rate with minimum tie in (3 years max) that will not see my monthly payments rise too much.

Thanks in anticipation.

forerunner_uk

If you have paid off £5,000 of your £215,000 mortgaeg then you will need to pay £210,000 over 23 years. This is exactly the same if you stay with Northern Rock or not and is usual for repayment mortgages. Don't let this dissuade you from shopping around for a better deal.

The "help with costs" will probably be to pay back legal fees when you moved. Make sure there are no other penalties before you leave.

You should see a mortgage broker to find the best product as there are many variables to take into account such as your proerty value and your income.