# Mortgage planning for 6 month's time



## parish (Jun 29, 2006)

I know 6 months is a looong time in the current climate and predicting what's going to happen next month is anyone's guess, however even taking all that into account it's probably not unwise to think forward.

OK, I've got an interest-only tracker at 0.81% below BoE rate so, as you can imagine, my monthly mortgage repayments are beer money atm 

The tracker ends in Sept (31 Aug to be precise) so I've got 6 months left. I've also got a couple of endowments maturing between now and then so when the penalty period is up I will be able to pay off ~12% of the capital.

The thing is, what to do after that? The mortgage is with Birmingham Midshires. Are they likely - based on their normal way of doing business - to just switch me to SVR, or are they likely to offer a good deal? A colleague has just come to the end of a fixed-rate deal with Alliance & Leicester and they've offered him 0.75% above BoE base rate for the life of the mortgage, which seems like a cracking deal to me - and there's no strings so he can overpay.

After I've paid the chunk off the capital the LTV should be 50-55% which makes me a good risk I would think?

The main reason for thinking ahead here is that one option would be to move house (to a smaller, cheaper house) which has always been the short to medium term plan anyway, which would give me an even more favourable LTV (<40% probably). Obviously, if moving is a/the sensible option then I need to plan ahead and really start the ball rolling in 3-4 months time.

So, is it too early to be thinking about Sept. given the current climate? I'm looking to make the best possible decisions while interest rates are really low to maximize the amount of capital I can pay off the mortgage.


----------

