Mortgage advice needed on interest only mortgages

silvereagle_2

What new mortage company and mortgage type would best suit our needs? Currently we have our mortgage with NR who have written to us telling us they can't offer us a reasonable rate and that we should find another lender. We have an interest repayment morgage only as we have endowment policies which are supposed to cover the amount borrowed which are due to mature in 2015. One endowment is valued today at £15,886 and the other is worth 2,371. We owe £34,000 on the mortgage and we have been paying more off our mortgage and are currently paying £250 per month rather than the £190 per month. We are paying £120 a month on one endowment and £16 per month on the other. My husband is disabled and doesn't work - he is 62 and I am planning to stop work next year when I'm 61. What we want to know is what we should do re getting another mortgage, what type of mortgage would it be best to get and which mortgage company is our best bet. (We have bank accounts we Abbey, Nationwide and Natwest)

poppy10_2

Probably best to stick with NR and go onto the SVR - you'll struggle to get accepted for a mortgage elsewhere and given the small size of your mortgage, arrangement fees for a remortgage would probably more than negate the effect of the lower interest rate.