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Mortgage Options...

Discussion in 'Personal' started by fantastischfish, Aug 2, 2011.

  1. fantastischfish

    fantastischfish Established commenter

    Hi everyone,
    I'm coming to the end of my 3 year fixed-rate deal (totally taken at the wrong time, missed out on low base rate etc....cry!) Anyway, in the absence of any equity in my property to act as deposit on a new deal, what are my options, if any? I assume that I will pretty much be stuck with whatever rate my current mortgage lender sticks me on?
    Advice appreciated?
     
  2. fantastischfish

    fantastischfish Established commenter

    Hi everyone,
    I'm coming to the end of my 3 year fixed-rate deal (totally taken at the wrong time, missed out on low base rate etc....cry!) Anyway, in the absence of any equity in my property to act as deposit on a new deal, what are my options, if any? I assume that I will pretty much be stuck with whatever rate my current mortgage lender sticks me on?
    Advice appreciated?
     
  3. catmother

    catmother Star commenter

    If you took a fixed rate deal when interest rate was higher,it could well be that your current lender basic rate will work out cheaper? Have you looked on the website to see what their current rate is?
     
  4. The standard rates with some big mortgage lenders are currently very, very, very low due to the bank of england rate and have been for a couple of years, lower than what you can get with fixrd rate deals (although obviously they will go up if the base rate goes up). So long as it looks like the bank of england rate is going to stay low you might be better going with the standard rate. Thats what I did when my fixed rate deal ended.
     
  5. gergil4

    gergil4 New commenter

    If you have the time, shop around preferably with independent financial advisors. I learned through ours that they often have access to deals which are not available to the general public - not a con - he's a friend too.
    Also think aboutyour financial position, do you want another fixed rate or stick with variable. it is a mine field but the best option os the one which suits you.
     
  6. You might not necessarily be stuck with what your lender offers you or you can just opt to stay on their standard variable rate. We moved house and didn't have much equity but found there were quite a few deals out there and although we did ask a financial advisor, we found a better deal on our own in the end. There are some good calculators out there that can help you work out what would happen if interest rates start to climb and how much your payments would go up by.
     
  7. kibosh

    kibosh Star commenter

    Oh how I sympathise. We did the same thing Eva and it really hurts . . . . . . recently I was so incensed at the sheer rip off of our mortgage that I looked into changing deals even though we still have 2 years of ours to play out (boo hoo [​IMG]) and though it makes no financial sense for us to change just now (savings made over two years only just balance out the arrangement fee) there are some 2 year deals out there for high LTV borrowers, on fairly decent interest rates. Shop around and compare. Good luck. I am spitting feathers to think of the interest we pay each month - 3 times that what we pay back of the loan!!!!!!!
     
  8. Chica77

    Chica77 New commenter

    Our 3 year fixed rate ended last July, and I was so pleased as it then went onto variable which is nearly £100 a month less than what we were paying on the fixed!
     
  9. fantastischfish

    fantastischfish Established commenter

    This month should see 3 existing finances paid off (including my student loan - woohoo!) meaning that, if I can slash a bit off my mortgage too, I should have some extra cash in my account to put more into savings - more than the pitiful amount I'm managing to save at the moment.
    Will have to make myself an appointment with my mortgage lender, plus maybe see the advisor I normally go to for some help as well. Can't find any info about their standard variable rates online.
     
  10. Go for a tracker mortgage. We currently pay 0.99% interest. (Cheltenham & Gloucester)
     
  11. kibosh

    kibosh Star commenter

    I'd have paid off half the mortgage by now if I was on that rate and had made overpayments to the tune of what I curretly pay in interest.
    Aaaaaarrrrggggghhhhhhhh!!!!
    Only 2 more years to go. [​IMG]La la la di la li da, da li la li la!


     
  12. We had an endowment pay out a few months ago and rather than pay off the mortgage we've invested it at approx 3%. Seems silly but hey it makes financial sense for the moment at least.
     
  13. kibosh

    kibosh Star commenter

    You're just showing off now [​IMG]
     
  14. catmother

    catmother Star commenter

    Phone them and asl them? It probably will be lower than your fixed rate as fixed are always more expensive.
     

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