Hi, I would like to re-mortgage my property to free up some equity, however, with the current state of the market, I am unsure what the best approach is.

My current interest rate is 7.95% on a variable rate, my question what is the best type of mortgage to go for at the moment? Should I stick with the variable rate in the hope that things may improve, go for a discounted rate or play it safe (so to speak) with a fixed rate.

Any advice would be greatly appreciated.

Many Thks

Hi, First of all...it depends how much equity you may have in your property.

7.95% is a nasty variable rate, and to be honest, even if you remortgaged to another lender and went straight on to their variable rate, you could save a lot of money!! E.g. Nationwide directly will offer a variable rate of 6.49% with no fees, free legal fees and a free valuation with no tie ins! Most lenders will offer better rates if your loan doesnt exceed 75% of your property value also, so bare this in mind then making a decision.

with regards to fixed rate changes etc....I cant really comment as it will depend on your current situation with disposable income etc. Things are certainly looking like the base rate may possibly fall, so possibly a tracker rate could be a good option for the next few years. Again, it will depend on personal circumstances.

It will probably be worth speaking to a broker, but to give you some ideas, HSBC direct have some great trackers with low fees at the moment, and they have no tie in's so you can leave at any time with no redemptions...C&G (lloyds TSB) also have some great fixed rates at the moment for customers under 75% Loan to value.

If you want to come back with a few scenarios including your property value and current mortgage, then it may help me with guiding you etc.

Thank you for this information, I think this will be very useful.

My property valued at £71,000 in 2005, so I would guess it would value at approx £83,000 just now (going on property prices in the area). The total amount to repay my mortgage if it had been redeemed on 31 March 2008 was £51,214, this included early repayment charges of £1,967, which are no longer applicable. There is 16 yrs remaining on the mortgage and I pay £447,69 per month. I would like to release approximately £5,000 of the equity on my property and I would prefer not to increase the monthly payments.

Any advice is greatly appreciated.

Kind Rgds