hello some advice on re mortgage

curlyboy

Hi guys and Girls

My fixed rate is up Oct 2008

£69 ,000 @ £4.49
£24, 000@ 6.18 ( this is on the SVR at the moment )

House worth £130,000

2 c/cards I owe £2,000

Shall start shopping around July time ???

Shall I tie both amounts together borrow a little extra to pay off cards and extra money to have and get one deal as a package

I have 20 years left on my mortgage is it worth re mortgaging and extending to 25 years to spread payments

I know im paying extra in the long run but it would lower my monthly payments

appreciate your advice

Gareth........

dimbo61

good news you might well get a deal less than 6.18 % so saving interest on
your loan !
bad news you have no chance of getting a deal anywhere near 4.49 %
so your mortgage is going to go up.
£69,000 +£24,000 + £2000= £95,000 mortgage
you say your property is worth £130,000
If you are young enough to spread the payments back over 25 years IE under
40 years old then they will allow that, but you pay loads more interest.
Start shopping round and contact a few brokers GOOD LUCK

curlyboy

thanks i pay £616 combined for the loan of £24k @ 6.18 and the mortgage of £69,000 @ 4.49...i know i got no chance of getting that rate for the mortgage I fi tie them both together and add the 2£k - total = £95,000.....Wont the re payments be less than £616... if u tie them both together ?? ? ?? im 35 by the way so shall i opt for 20 year option or opt for 25 year me and my partner only earn £29k combined a year

What approx would monthly payment be on £95k oh yes both amounts are with Halifax

thanks

dimbo61

ok you can check this on the halifax website
as you are already a halifax customer you can get a 5 year fix at 5.99%
with fees of £699
This will cost you £608.57 a month
You may well get better deals if you shop round yourself or pay for a broker
to look for you .
which deal and for how long is up to you
my advice costs nothing but it is nice to get THANKS !!!
consider long term fix as you know where you stand and can always make
overpayments if your finances allow. good luck

Tiddler_2

Curlyboy,

I would double-check that the additional monies you have at 6.18% do not have any penalties attached to them, as the Halifax's SVR is 7.00% wef 1/5 (currently 7.25%) If you are on a penalty free tracker then fine.

Whether to increase the term to 25 years is all down to personal choice and how tight money is for you at the moment. As you are 35 you could theoretically take the mortgage over 29 years if you intend to retire at 65, but the longer you take it out for the more interest you pay as everyone has said.

If you were to take a mortgage of £95k out at 6% it would cost around £680 pm over 20 years, and £612 over 25 yrs.

curlyboy

Thanks Tidder

firstly no tie in fee my fixed rate is up on the additional amount @ 6.18 its on the svr no penalty on that

i WILL BE TAKING IT OVER 25 YEARS £95k hoping get around 5.75 fixed somwere i hope

money is very tight as me and my partner do not earn a gr8 deal

on the plus side still have £35k equity in my house and we not moving anywere dont you agree ?? ? ? ? ?

thats the plus side.....

do you think i will get a deal of £95 k @around 5.75 or better guys ? ?

thanks a lot peeps

Tiddler_2

HSBC currently have a 5 year fixed at 5.39%, though it does have a £999 fee, or 5.73% with a £499 fee.

As they don't deal with brokers I don't know if the fees are upfront or whether they can be added.

They are probably about as good as it gets at the minute.