Mortgage Advice

Scotsgirl

Hi just looking for a wee bit of advice if anybody can help. Had been looking to change lender re the following

Loans

31,707 5.1 fixed 2007 8 years 3 months to run
23,020 5.5 currently but can be reneogiated in 2007

Repayment of 697 a month


Penalty at this date of £622 if change over to another BS increasing monthly

Have spoken to existing lender she has advised that as monthly payment is quite high I increase the the term to either 10 or 15 years therefore making the monthly payments lower

Is this a good idea ? The prospect of being mortgage free in 8 years is very appealing but by increasing the term time having a little extra every month is also appealing

Help

Joe_Bloggs

What term is the second part of the mortgage ?
Is the repayment high by your lenders standard or yours? Would you have to pay any fees to extend the term ? If you extended the term could you make penalty free overpayments to get you closer to the eight year goal if you have spare cash ?. What is your savings/other debt situation ? You need some cash in high interest accounts to cope with emergencies without taking out loans.
The lender makes money on the interest you pay and through early repayment fees . The longer the term the more interest you pay.
J_B.

Scotsgirl

Joe_Bloggs wrote:

What term is the second part of the mortgage ?
Is the repayment high by your lenders standard or yours? Would you have to pay any fees to extend the term ? If you extended the term could you make penalty free overpayments to get you closer to the eight year goal if you have spare cash ?. What is your savings/other debt situation ? You need some cash in high interest accounts to cope with emergencies without taking out loans.
The lender makes money on the interest you pay and through early repayment fees . The longer the term the more interest you pay.
J_B.

Thanks JB

2nd loan is same term but as we took that at a later date they would not give us at the same rate as the first loan although this can changed in 2007

No fees to extend to extra years but can change accordingly with our finances ie, if we extend for 15 years but have spare cash can change back to 10 years or the 8 years, again no fees

Do have a debt problem so making lower payments would help by allowing us to assist in clearing some debt

Just trying to work out the best option

Cheers