Life decisions

[widowedm]

I'm rubbish at making life decisions like this. I just need some opinions.

I need to remortgage before September as I go to uni in September. I will ironically be better off financially, but because it's student finance I wouldn't be able to remortgage on it, so I need to do it now.

I have to wait for a payday loan to drop off in August before getting the best rate. (Lender is adamant on this, the payday loan was taken out and paid off within a few weeks for a pet insurance excess but they're sticking to it)

My credit isn't the best; and won't be good until December 2025 when defaults etc drop off.

Current mortgage is 16 years at £592 per month

So options are:

Option A - remortgage now, rate is 6.7%, term 23 years, payment £505. This would mean all debt repaid and can potentially have enough to take kids on a few day trips.

Option B - remortgage in August. Bit risky as it means may not be in time for uni (if they need Septembers pay slip I'd be screwed and unable to remortgage at all. Be stuck on variable rate and still have credit card debt, but with the student loans I'd be ok still). Rate would be 5.29, over 17 years with payments of £528 (£445 if over 23 years like option A)

So option A has lower payments but 6 years longer term.

I would remortgage when I finish uni so the term isn't too important at the moment.

My heart says option B as the term is shorter and the rate lower, but it's a risk as applying in August means if it drags on and they need September payslip I won't be able to remortgage at all until i finish uni.

I don't know if anyone can help

AIBU - go with option A and revisit it in 3 years

YNBU -
Wait and risk it

I’m very risk averse so option A rather than B. I couldn’t sleep soundly with that level of risk hanging over me. As you say, if you get stuck on variable rate, you’re screwed.

Is option A a fixed rate, if so how long for? Based on info you've given I would play safe and go for option A. It's not much more in interest and you can remortgage and look at reducing the term once the fix and uni is over.

Both are fixed for 5 years

Sorry quoted wrong person!

Both are fixed for 5 years and the risk does worry me too.

Thanks for the advice, I just wanted to make sure I'm not over thinking it xx

What does your current lender offer as that's usually much easier to get and could be a plan B in reserve?

Option A. It's a no-brainer IMO.

Option A!

Option A definitely!!

Option A. You said yourself that the term doesn't really matter. If you only plan on keeping it for a few years the difference you will pay will be negligible, so there is little to be gained by waiting but a huge amount to lose if you wait and anything goes wrong when you apply in August.