Any finance/mortgage gen?

[Ben]

One of the properties is with Halifax and i owe £87k on approx £100-110k value. and is currently on intrest only but really want to change to capital and intrest,

The other is with Birmingham midshires and we owe £125k on a £150-160k property again on intrest only.

This is my current plan please feel free to point out any glaring flaws...

I want to keep the cheaper loan on intrest only as this is only £250 per month and this gives me more income to plow into the 125k loan at which i can afford approx £2k a month to pay off, but i dont want a £2k a month mortgage as if i am out of work thats a lump to find each month, whereas i can manage a £1-1200 a month even if out of work and then over pay the £1kish per month to clear this, aside from this, if i can manage to save up some cash to pay off some of the capital of the 87k loan on an intrest only deal is this possible?

[The Simps]

If you're on the SVR with both the mortgages I cant see any reason why you cant set up a voluntary overpayment of whatever you like. If you want to keep the flexibility of being interest only then moving them to a new lender might be tricky as alot now dont like interest only mortgages and prefer repayment. Because of what loan to value you have on both mortgages I cant see you making that much of a saving on switching mortgages as opposed to staying on the SVRs you're currently on.

Have you contacted each lender to find out their overpayment arrangements?

[Jim]

But then if you get a fixed deal at a good rate then its not so bad. The Simps might be worth speaking too, hasnt been on here for a while mind. Maybe doing some work on his WIP Nova..... He is in the mortgage/finance business IIRC.

Like I said, I don't know what deals are around at the moment. Last time I looked at switching deals I was offered a fixed for 5 years @ 5.09% which would not have been financially beneficial for me. I may live to regret this if interest rates increase massively though.

[Ben]

Thanks for all the replies and advice, Jim i found this article which was intresting reading... Clicky

[Saloony]

If it were me, i would do short term fixed paying the extra 10% (that most give you the option to do), on both mortgages. All that you can afford, plough that into a savings account, end of the fixed term you have a wedge to plough in and pay it off in a lump. So if work should dry up, your sitting pretty with ya safety net, but if work is still doing well, plough it in secure another short term fixed and repeat.

[marc69]

Halifax will let you pay what you want when you want over and above your noraml payments. They will encourage you to keep the mortgage and invest in other areas...keeps thier books good but, if it is a plain capitol and interest there are no penalties for early payments.

I have done this with two properties, the first i was tied in for five years witha fixed rate, never again! I always go for capitol and interest only, allows you freedom to over/underpay depending on what is going on aat the time. Hope this helps

[Ben]

Right then just sorted both loans out, after speaking to both lenders they are both happy for me to switch immediately onto a repayment plan (infact were very pleased indeed) I have kept them on the current terms without signing into a deal for x amount of years, both deals are on the SVR + 1.99% so i am paying 2.49% intrest. And with both lenders there is no early repayment clauses and i can repay as much capital as often as i like and as much as i like.

Thanks for the advice guys.

[MK999]

But then if you get a fixed deal at a good rate then its not so bad. The Simps might be worth speaking too, hasnt been on here for a while mind. Maybe doing some work on his WIP Nova..... He is in the mortgage/finance business IIRC.

F

love you really

[The Simps]

You mean bank of england base rate, svr is what your lenders standard rate is, but know what you mean. Sounds like you done alright. I still personally would have kept it interest only but upped payments to the repayment level (as a minimum). You'll have one hell of a job now if you want to go back in the future.

Right then just sorted both loans out, after speaking to both lenders they are both happy for me to switch immediately onto a repayment plan (infact were very pleased indeed) I have kept them on the current terms without signing into a deal for x amount of years, both deals are on the SVR + 1.99% so i am paying 2.49% intrest. And with both lenders there is no early repayment clauses and i can repay as much capital as often as i like and as much as i like.

Thanks for the advice guys.

[The Simps]

Oh Mark - i have been working on it actually

Just realised i didnt reply to your text. I'm away all of september but maybe a mince in october could be arranged!