After Northern Rock, which mortgages should I choose?

Posted on 24 April 2008

I purchased the other half of my shared ownership property in 2003 valued at £173,000. I combined my mortgage halves with Northern Rock. The fixed term comes to an end in October 2008 after five years. I need another mortgage. You mention interest rates could go again as low as 4.5%? I need to get my mortgage in place for October and don't know who to go with. I would rather it is fixed and not a tracker. Any advice?

Hi Anthea,

If you are more comfortable with a fixed rate, then absolutely take one. The projections we make on what Bank Rate could change to are speculations based on economic variables, any of which could randomly change and surprise us, as the credit crunch showed!

If by going halves with Northern Rock you mean you are on a shared ownership or a shared equity scheme, the other lenders that offer this are, by and large, still offering them, particularly as you will have some equity in your property now.  You're a little early for an October remortgage; even lenders who keep their offers open for six months wouldn't be able to start your application yet.  However if you would feel more comfortable getting the names of who is still able to do this sort of mortgage for you personally, then give a whole-of-market, (preferably fees-free) broker a call, and they will take your preferences and details and tell you who has the best deal available for your circumstances.  Charcol can be reached on 0800 358 5568.

Category: Current rates & the market, Remortgaging

• Save to del.icio.us
• Digg this story