Looking for some Mortgage Advice

AuctionMan_2

I have recently reached the end of my interest only period on my mortgage and it has jumped by £300 to over £800 (on a £115k mortgage). Now I knew this was going to happen and was planning on being better paid but that really hasn't panned out the way I wanted for various reasons..

My questions are, what options do I have now? What is the best course of action? Do I simple approach my bank or do I go teh broker route? If I go the broker route how do I know that they will be getting me the best deal?

Sorry for all the questions but I hope to not have to stumble through this and get it sorted sooner rather than later.

Thanks

dunstonh

I have recently reached the end of my interest only period on my mortgage

Do you mean you were on interest only and now on capital and repayment or do you mean that you had a fixed interest rate which has now expired?

Do I simple approach my bank or do I go teh broker route? If I go the broker route how do I know that they will be getting me the best deal?

Whole of market/independent broker has thousands of mortgages available to them. Bank just has their own. So, given the choice the broker should win. If you are paranoid about the advice then ask to see the research. All brokers have to keep it on file anyway so no harm showing you. Many will automatically.

Martin_Moore

Firstly brokers have to prove that they have given best advice, i.e got you the best product based on your needs and preferences. Cases are checked by compliance staff and brokers who do not give best advice are struck off.

You have to check that the broker is "whole of market" or tied adviser. The independent "whole of market" have to prove they have obtained the very best deal based on the facts.

The other option is to ask your bank what the best deal they can offer you at the current time. You did not mention the value of the property as this will be very important in assessing what options are available to you. Depending on the loan to value 115k compared to the property valuation.

mitchaa

Can't you simply remortgage for another IO deal, or are you talking about IO.

If you cant afford IO now, and its gone up £300, then should you really have a mortgage at all? How are you going to pay capital back?

AuctionMan_2

Sorry yeah Im now on Capital and Repayment...

Its not an issue of being able to afford it as I will just move my finances around to cover it but I was looking to potentialy get a better deal and it looks like the whole of market broker route is the best to go.

Mortgage value = £115k and House value = £137.5k btw..

Thanks for the advice