Is anyone remortgage savvy?

[mollysmum82]

We're coming to the end of our 5 year fixed rate mortgage and we are paying £1200 a month (capital and repayment). We bought the house for £170,000 and we've got about £155000 left on it now. Are we paying too much do you think? I've never remortgaged before so I wondered if anyone had any tips or recommendations on lenders? Thanks so much for any help!

[ForeverProcrastinating]

Hi OP, I'll try and help a bit .

1. First speak to your current lender and see what options they can offer, generally speaking they don't want to lose good customers.
   
2. Approach an independant mortgage advisor, I know London & County have a good reputation (sorry, can't recall website but just type in name)
   
3. You may be a little restricted as your equity isn't huge and house prices are less now than when you bought. If money is tight consider interest only BUT be aware the balance owing won't reduce - sorry if I'm teaching you to suck eggs on this.
   
4. Check out the best buy tables in the financial sections of a broadsheet paper or a website such as www.moneysavingexpert.com or www.money.com.
   
5. It's hard to tell if you are paying too much, depends on your interest rate. Rates will start rising soon but are still at a historic low, anything around 5% to me is good as I remember well paying 15% in the early '90s (shows my age!).
   

Good luck.

[mollysmum82]

Hi Forever

Thank you so much for your reply, I really appreciate your help. No not sucking eggs at all, everything makes a lot more sense now! I spoke to L&C and they were brilliant, thanks for the suggestion!

Unfortunately it looks like I'll have no where near the 90% LTV I need so its down to variable rates I guess now! Goodness me 15% is horrendous!

[ForeverProcrastinating]

Glad to have been of some help, best of luck for the future.