Kathryn W
Member
Registered: 12th Oct 03
Location: Widnes, Cheshire
User status: Offline
|
Re-mortgaging where do I start?
Our mortgage is up at the end of July so I believe it’s best to start now in order to make sure things move over in time etc… If we stay with our current mortgage lender (Bank of Ireland) the monthly cost will reduce by £160, but I believe they are one of the more expensive lenders.
What’s the best way to go about at re-mortgaging and what type of mortgage is best in the current market? I think we have around £15-£20k equity.
We’re complete novices at this – and don’t want to be paying a financial advisor something we could do ourselves.
|
Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
|
Depending on when your mortgage started you might find the rate you are dropping to is better than you can get with a new mortgage.
The generic compare sites are a good starting point.
Best type of mortgage - Your guess is as good as many experts.
I was told I should fix mine 2 years ago because they were all going to shoot up by an, That expert would have cost me £1,000s over the last 2 years!
Personally I can't see any major recovery coming any time soon i.e. 2-3 years so personally would not fix short term unless the rate is an improvement over what you have
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
I'm also re-mortgaging at the moment.
I'm only considering fixed or tracker products. I don't think the BoE base rate is going up any time soon but I don't trust lenders enough to choose a discount/variable product, as they can put those rates up whenever they like.
I use MoneySupermarket, I've been monitoring the market for a while now and I think Nottingham BS seem the most competitive at the moment, but it all depends on what your LTV is.
It might be worth giving London and Country a call ( http://www.lcplc.co.uk ), they take a commission from the lender so won't cost you anything, I often find they can't beat MoneySupermarket though.
Keep an eye out for fees, because the rates are so low, lenders are compensating for this by charging huge fees, some up to £2000.
[Edited on 02-04-2013 by James]
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
Don't count on the equity either, just coming out of a 2-5 year mortgage on a first house might mean it's not worth quite as much as you think.
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
Also consider the legal and valuation costs. A lot of lenders will pay for this if it's a re-mortgage, but not all do. That could easily add another £500 to the costs.
[Edited on 02-04-2013 by James]
|
dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
|
I'm also in this situation at the moment, currently sitting on Halifax SVR, can get 5 year fix for 4.79% I think, but over a 12 year shorter period. Looks like all fees are incentivised down to £0 but my family situation may change in the next year so don't want to be tied in to a higher repayment...
Stressful time indeed!
edit - bang on 75% LTV
[Edited on 03-04-2013 by dannymccann]
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
That's a terrible rate for 75% LTV. You should be aiming to get nearer 2.5%. I can get 2.79% for 80% LTV.
|
AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
|
Where?
Because I'm currently on 3.19% and having searched and searched I can't find anything even nearly as good!
2.5% seems very optimistic.
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
quote:
Originally posted by AndyKent
Where?
Because I'm currently on 3.19% and having searched and searched I can't find anything even nearly as good!
2.5% seems very optimistic.
2.29% here:
http://www.leekunited.co.uk/mortgages/products/new-customers/2-year-fixed-rate-up-to-75-percent-loan-to-value-available-through-branch-network-only
That was with one Google search.
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
2.89% if you really want a 5-year fix:
http://www.westbrom.co.uk/westbrom/mortgages.product?id=5690&insearch=true&changingproduct=&category_id=1
|
AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
|
Ah ok, perhaps I should have added with unlimited overpayments 
|
Gaz
Member
Registered: 24th Aug 03
Location: Widnes, Cheshire
User status: Offline
|
Can you have a mortgage 'arranged' so many months before moving over to the new company?
|
dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
|
James, needs to have no or very little 'application' costs, £995 / £1250 probably can't be paid with buttons
|
Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
User status: Offline
|
quote:
Originally posted by Gaz
Can you have a mortgage 'arranged' so many months before moving over to the new company?
Usually 3months.
Ring your current lender, get a redemption fee. This may currently have an early repayment figure included, should state in your contract how much. Take that off that's roughly what you will owe when current deal expires.
What house is worth to how much redemption figure you need to pay. Work out the LTV and look at current deals.
I was lucky as my house had increased £12k in value over 2 years so my LTV also went down. Best deal I could find at time was with Nationwide on a 3yr fixed.
April '06' Corsasport Feature Car  | Aug '08' Total Vauxhall Feature Car | Spring '09' Fast Car Feature Car
|
James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
|
quote:
Originally posted by dannymccann
James, needs to have no or very little 'application' costs, £995 / £1250 probably can't be paid with buttons
The bulk of the big fees usually get added to the mortgage. The only problem could be if adding the fee to your mortgage takes you over the LTV that you are aiming for.
|
