Remortgaging

[BravingSpring]

I'm going to have to re-mortgage at some point in the next 6 months to a year so I can buy my STBXH out, this will of course be after we've agreed what proportion of the equity he is entitled to, my solicitors initial advice is between 20% and 30%.

Anyway, as we're only a couple of years off paying off our current mortgage and it's on a fixed term I really haven't kept an eye on interest rates etc.

I'm tempted to re-mortgage over the shortest period of time I can afford, so pushing the monthly payment up a bit, rather than trying to keep it the same, and I've been looking at deals with no fees, but do I go for a 5 year fixed rate, a discounted rate or a tracker?

My head says go for 5 years fixed so I know where I am and then look for another 3 year (hopefully no longer) deal after that.

My current lender is offering a 5 year fixed term at a good rate with no fees, although there would be a fee for leaving the current mortgage I understand, which STBXH will have to go halves on.

I'm thinking staying with my current lender may be the least complicated option, as I also have to get him off the deeds as well as the mortgage and go through a divorce, so straight forward is attractive.

Any thoughts would be appreciated.

Personally, I'd not mortgage to the max, but look for something with an overpayment facility.

We are on a tracker now, and have done very nicely out of current interest rates. Where do you think rates are going to go in the next 5-10 years? I suspect up, as they can't really go down!

Can you keep the current mortage, with his name taken off (I have no idea if this is possible) to save the exit fee, and take a second mortgage for the remainder?

Not sure why staying with the current lender would be any easier? They will still need to look into afordability for just you, and things have changed since you (and I) last took out a mortgage.

My current provider said I'd need to start a new mortgage just in my name, but I'll double check.

They made it sound fairly straight forward, I'd have to go through the affordability checks and that would be pretty much it.

I'm only looking to increase my current mortgage payment by around £30-£40 a month, but I'm increasing the term, so it'll be affordable, I want it paid off asap but don't want to be too stretched in the meantime.

Luckily there's plenty of equity in the property so actually getting a mortgage shouldn't be a problem.

Do some maths about how much it will cost in the long term to extend the length if you are going to have extra cash available. It sounds like an expensive way to go about it, but I've not checked.

Check about a change of equity. I did this with my exh. I kept the same mortgage. Maybe it won't work if you want to change the terms.

They did say something about equity release, i need to speak to them again now I'm thinking a bit clearer.