Confused and a bit stressed... mortgage due for renewal and don't know which type to go for!

[notnowbernard]

Do we stick to interest only which costs less but obviously is what it says it is - interest only!

Go for 5yr fixed rate which will cost about £150 more a month than what we pay now

Or go for a 50% int only 50% repayment which pushes nearer to the GRAND a month level

I know sod all about these things, and get a bit freaked out by it all, esp with how things are atm

And DP owns his own business (which is in its infancy, so not loads of cash coming in... but is doing well so could pick up in the future by a fair bit)

Any thoughts much appreciated

(Boring subject I know, sorry)

What have you been offered and at what rates?

Repayment one was 5.69% (not sure if fixed or variable)

Int only fixed at £796

Maybe take the IO until you see how his business goes You can then change to repayment when things are clearer

Talk to London and Country mortgage brokers. They're free and will find you a good deal and advise you.

bloody hell, £796 interest only!!!!!

5.69% seems high for a variable, I would go to an independent financial advisor and see what they can get for you - it should be free, they get commission from the mortgage lender not you IYSWIM

Is that a lot? I am clueless

Noddy I feel the need to play safe but get a bit stressed that we are not paying anything off (and haven't since we got a mortgage in 2005)

My existing mortgage lender is giving us 3% variable for repayment though.

What's BOE base rate at the mo 1.5% or something?

Well you can always stick with IO for now and if you have any spare cash each month stick it in your savings and when you remortgage to repayment you will have a bit of cash either for fees or if no fees make a lump sum payment off your mortgage total.Can you maybe see an advisor?Many are free and get paid by the lender.HTH There must be some better deals than 5.69 looking at the current base rate

yes that is alot! on int only we are paying about £300 tops now, on a £200k mortgage

....is an offset mortgage an option?

They work very well if you have 25% plus equity. The Halifax 'Intelligent Finance' and RBS 'One Account' are major providers.

Just a thought..

with interest rates so low is it not worth going on a repayment and building up some equity in your property. I spoke to abbey lst night who offerd us a rate of 1.9% (obv this will go up when rates go up).

Thanks for replies

Have just been speaking to dp about it, he reckons it's more about our income than anything else (ie because of his business - some months not earning anything - this affects what offers we're given)

Really don't know what to do! He has been speaking to a financial advisor who is calling him tomorrow to discuss it all further

Because I am so thick unknowledgable about it it makes me feel like we're being fleeced all the time [paranoid emoticon]

have you been on comparethemarket.com or similar - gives you an idea..... i agree i dont get it much either....