Paying to switch mortgage

ps_live · 19 April 2005 at 1:19PM

Hi there, I have now "found" the mortgage forum

In less than a week, thanks to MSE, I have:

Opened in ISA
Switched my gas and electric
Got 12 months free line rental from NTL
Registered to use 1899 for calls
Got an 18months 0% Cap One offer through the post from a fellow MSE'er

Now it is my mortgage's turn. I currently owe C&G about 65k with 18 years or so to go. Its a repayment mortgage and is broken down into sub-accounts (I have taken equity twice).

sub acc 01 - about 47k @ 4.99%. Current deal ends March 06
sub acc 02 - about 9.5k @ 4.99%. Current deal ends March 06
sub acc 03 - about 10k @ 6.75% SVR
sub acc 04 - about £150 @ 4.99%. Current deal ends in March 06

I have rang C&G this morning, specifically to find out when my current deals end and if there was anything I could do about the SVR sub acc.

I was told that as I borrowed less than 25k, sub acc 03 was subject to svr for the remainder of the term (thats 18 bloody years) :eek:

I enquired as to when I should be applying for new rates before my current deals run out. I was told that I could only apply for a new deal AFTER my current deal runs out. This means I will have to pay svr for a month whilst choosing another deal. Once a new deal has been chosen, I must then pay £199 arrangement fee !! :mad:

This can't be right can it ? :eek:

I remarked that this didn't seem very customer friendly. The lady agreed with me, but said thats just the way it was.

So ... 4.99% is pretty good at the moment, so I guess I'll stick with C&G until Feb next year ... but what then?

Where do I go from here?

thanks

Pete

crazyhazy · 19 April 2005 at 1:29PM

I would think the easiest thing to do would be wait until next year and then start looking at other lenders. When remortgaging to another lender it would all be cobined into one account, so no difference in rates.

Are you able to overpay on the mportgage at the moment, cos personally I would be trying to bring down the balance on the 3rd account if you are able to.

I suppose another option if there is no penalty for paying extra in would be to get a loan for the 10k and pay that part off, but this would only work if you could afford loan payments which would be higher and could get a good rate.

Fairdo_2 · 19 April 2005 at 1:30PM

Well done on all you have achieved so far.

I just wish I could do all the icons most of you have worked out how to put on!!!!!

If you were moving home, you would be in a position to take any new rate with them, as they have a last year clause that they allow you to change deals as an existing borrower home mover within the final year of a product penalty free. Somehow, with 4.99%, I don't think you would need to.

I think she was slightly incorrect at the C&G as I am sure you can do a product transfer in readiness for going onto SVR the month before ready for it to be in place on expiry of product. She was right about the sub-account though.

You should be in a strong position at about December 2005/January 2006 to look at other lenders and what they will offer in time for them to go through the full legal remortgage process, obviously being able to see if C&G will be in a position to offer you something competitive at that time.

Paying to switch mortgage

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