Help - fixed rate ending!

never_too_late_2

Be warned - it's failry long and slightly complicated!

Dear All,

I hope this is the right place to be posting this. DH and I have an outstanding mortgage of approx 121,500 GBP which from 1st June 2008 is no longer on the fixed rate of 5.39%. This means it will revert to the SVR of 7.49%.

In short, our monthly payments will go from 785 to 932. The change in amount isn't so bad cos currently we overpaid and comfortably afforded 900 per month. So that's not really my worry.

I know the most sensible thing to do is change mortgage provider for a better rate, however:

1. If we move before Dec 2008, we have to pay back 1,000 GBP cashback to current mortgage provider (small print, nice)
2. We have decided to sell up and move abroad. Thus, we don't want any tie-in period with new mortgage provider and this gives us much less choice and not as attractive rates.

So - what should we do? Obviously the housing market has slowed down somewhat now and I don't want to be paying lots of interest and losing out but of course, there is a cost involved with re-mortgaging too which needs to be considered.

All advice happily received!

Thanks,
NTL
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abouttimetoo

Hi never too late. Sorry, I don't know the answer but just wanted to give you a bump as well as say that it might also be worth posting this on the mortgage board

Regards

Haggis_01

never_too_late wrote: »

Be warned - it's failry long and slightly complicated!

Dear All,

I hope this is the right place to be posting this. DH and I have an outstanding mortgage of approx 121,500 GBP which from 1st June 2008 is no longer on the fixed rate of 5.39%. This means it will revert to the SVR of 7.49%.

In short, our monthly payments will go from 785 to 932. The change in amount isn't so bad cos currently we overpaid and comfortably afforded 900 per month. So that's not really my worry.

I know the most sensible thing to do is change mortgage provider for a better rate, however:

1. If we move before Dec 2008, we have to pay back 1,000 GBP cashback to current mortgage provider (small print, nice)
2. We have decided to sell up and move abroad. Thus, we don't want any tie-in period with new mortgage provider and this gives us much less choice and not as attractive rates.

So - what should we do? Obviously the housing market has slowed down somewhat now and I don't want to be paying lots of interest and losing out but of course, there is a cost involved with re-mortgaging too which needs to be considered.

All advice happily received!

Thanks,
NTL
-x-

You need to see if a new deal would be worth it to pay the £1000, assuming you have it. I have never heard of a 6 month tie in before. Check with your lender to see if they would allow you to take another product instead of moving onto SVR. 7.49% is on the high side, my SVR with the Nationwide os 6.49%, so if you have to move and do not want a tie in there are better deals to be had. I am on SVR as my morgage is now too small to allow a fixed deal, and I do not have long to go.

never_too_late_2

Thank you both for your help and advice. I'll see if the mortgage board peeps can offer some more help but otherwise, guess I'll continue arming myself with as much info as poss!

Cheers All,
NTL
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ailuro2

http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback

have a read of this, MArtin's article on the subject.