Re-mortgage advice please

[OnMyWhistle]

Hi

Talk of interest rises this morning has prompted me to ask for your views on my mortgage situation please.

My partner and I are currently on NRAM svr (4.79% I think). Our outstanding mortgage is £162k and our property is probably worth £185k. We are making interest only payments just now (no flaming please) but can change to repayment next year once our youngest goes to school and our loan is paid off (cost £264 per month). Our income is the problem here - we both work full time - last year DP earnt £20k and i earnt £10k after expenses (am a childminder).

Do we have any options here and is it worth me speaking to a mortgage broker? Or shall we just move onto repayment and hope interest rates don't go up too much?

Going to ask on MSE too but thanks for any advice (won't be back on here til later)

I'd talk to a mortgage broker and see what they say. You have nothing to lose by finding out what your options actually are.
Can you also talk to your bank?
Do you have anyone who can act as guarantor to get you a better mortgage product.

I'm staggered anyone let you borrow £162k against a combined income of £30k. I don't think you're going to get better than 4.79% at the moment and, if you want to protect yourself against interest rate rises, any fixed rate deals are going to be more expensive which doesn't really solve your problem.

Can you free up any cash at all in your budget? The loan is presumably costing you more than 4.79% so it would help to overpay and reduce the balance as priority.

Sorry to be pessimistic OP but you have absolutely no chance of remortgaging with such a poor loan to value ratio on relatively low salaries with childcare costs and a loan.

I'm pretty sure you can't even get an interest only mortgage on that LTV any more.

Hang on as you are until the loan and childcare costs have stopped and take a view then.

There was no rate rise.

Thanks for your responses. Yes it is as I thought, so I won't waste a mortgage brokers time or mine by asking! Yes Cogito we can make overpayments on our loan so we are going to double our payments on that and clear it a few months earlier then switch onto repayment mortgage. Thanks again.