Remortgage issue… please help?
Wednesday, January 20, 2010 19:16
We have just reached the end of our 3 year fixed rate mortgage where our rate was 6.75%. Now we have been informed by our lender that our mortgage has been switched to the variable rate. To our joy in this difficult economic climate, they reduced our monthly repayments by £600 which means that we are now £600 pounds better off. Prior to taking out this remortgage, we had adverse credit meaning that we were paying quite a lot monthly but over the past few years we have never missed a mortgage payment, and have nearly almost paid of all our credit card debt. Now as interest rates are at an all time low I am wondering whether to stick with the existing lender, or switch to a long term fixed rate as our priority is to keep monthly repayments as low as possible, and get financially stable. Also, will we still be treated as having adverse credit? Any advice would be greatly appreciated. Thanks.
Cala B says:
January 20th, 2010 at 7:16 pm
Like the other answer says, speak to an independent mortgage adviser – not one who is only selling his own company’s products. If you can get a better deal then that’s great. If you can’t, then you’ve lost nothing.
leambi says:
January 20th, 2010 at 7:16 pm
You should always shop around to see what other lenders have to offer, if you are the type of person who needs to know what their monthly payments will be each month to help them budget then a long term fixed rate may be the best for you, although interest rates are low at the moment they will go up again and if you are still on the variable rate then they could go even higher than before and you could end up paying a lot more each month. My advise would be to speak to an independent mortgage broker and try using comparison websites as well.