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Mortgage nearly at end of fixed rate, we cant afford new rate, how do i switch to a new mortgage? Help!

6 replies

allgonebellyup · 10/09/2007 11:02

i am now on my own but ex dh is still happy to pay mortgage, except that in january the 2yr fixed rate ends and then the payments double in cost!and we are paying interest only for the next few yrs til i have a good job!!

can i apply for a new mortgage and get another fixed rate as if we had just bought the house? can i take out a 5yr fixed rate?
am so confused and stressed, am doing it all on my own..

OP posts:
tutu100 · 10/09/2007 11:04

I would reccommend contacting an independant financial advisor. They will go through your circumstances and discuss what mortgage they think would suit you best.

Because they are independant they can advise on a variety of different companies mortgages so it saves you trotting round variuos banks and building societies.

We have seen a couple over the years and they have allows been really nice and helpful and not pushy.

Good Luck.

tutu100 · 10/09/2007 11:05

that should have said always been really nice!

CatIsSleepy · 10/09/2007 11:08

when our fixed rate ended recently (or rather, just before it ended), I arranged to switch to a different fixed rate mortgage with same bank.Didn't have to do much, just rang them up, they sent the documents for me and dh to sign, that was pretty much it.
Had to pay an arrangement fee of around £600.
Couldn't face switching to a different bank-could have got a marginally better rate but would have been lots more hassle and more fees too (am lazy that way)

Hope you get it sorted, these things can be stressful can't they

cluelessnchaos · 10/09/2007 11:09

We swtich our fixed rate at the end of the special term each time. You are doing the right thing in giving yourself lots of time to switch, you should really get some advice onthe best deal for you, but you can do loads yourself online. Last time we had come up with a better deal than the IFA, so we did it on our own.

Things to think about are:

Product fee, betwen nothing and £1500
transfer fee,
solicitors fees,
valuation fee, usually about £400

The first thing to do is contact your current lender and ask them what new fixed rate they will offer you, and then you dont have to worry about transfer, solicitor and valuation fees, cos they already have all the information.

Then you can work out how much you will save/lose by switching companies, hope this helps.

3madboys · 10/09/2007 11:14

we just went through this, we are also interest only, and couldnt afford the amount our mortgage was going to go up by, we shopped around to see what deals were on offer and then went back to the halifax who we are with and they offered us a comparable deal

its fixed rate again, but only for 2 yrs the 5 yr deals seemed to be more expensive and with a higher rate unfortunatley.

LilyLoo · 11/09/2007 17:06

allgonebellyup could i reccomend you to look here

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