Hoping to remortgage

dprovan · 18 July 2017 at 10:47PM

Hi

My salary is £55,000 and my wife earns £29,000

My house is valued at £250,000 and the remaining mortgage is £159 with 12.5 years remaining.

I have £32k on 0% credit cards all with deals 2.2-4years.

We have savings of £31k

We would rather pay the cc down using the 0% but would like to remortgage as we are on a 3.9% deal just now (not tied in and free to remortgage)

Are we likely to be able to emortgage with the 31k on cc given circumstances?

thanks

Thrugelmir · 18 July 2017 at 10:50PM

Try some lenders online calculators to ascertain the impact of the debt. Lenders will assume you have no savings.

getmore4less · 19 July 2017 at 8:54AM

start with the retention deals of your cuurent lender, they may be good enough to not bother going down the remortgage route.

if these 0%CC have been fee based unless you are getting good rates on the £31k savings you are probably not making enough to make them worth while.

amnblog · 19 July 2017 at 9:50AM

This figures appear to fit, but the size of the C Card debt may cause some Lenders to decline.

Needs careful handling.

dprovan · 21 July 2017 at 2:34PM

Thanks for all the advice.

getmore4less I took your advice and phoned my existing mortgage provider.

They initially offered me 2.49% on a 5 year fixed which I was disappointed with.

I asked if they could do any better and they said if I paid off a lump sum to my balance of £8,400 they would give me 2.09% or 1.89% with a product fee of £999.

I think I am going to go with the latter so my mortgage balance would be £149,833 at 1.89% (with a fee of £999) for 12.5 years = £1122.31 per month.

Currently I have two parts to my existing mortgage £83,395 at 0.99% above BOE rate so 1.24% and £74,837.80 at 4.74% paying = £1262 per month.

This means I would be saving £140 a month based on these figures. All in all it seems a good deal to me what do others think?

The bank are going to phone me on Monday and he added bonus is this is agreed without credit checks etc

kingstreet · 21 July 2017 at 3:12PM

dprovan wrote: »

£83,395 at 0.99% above BOE rate so 1.24%

Try to retain that if staying with existing lender.

Choose new product only for other sub-account.

dprovan · 21 July 2017 at 3:34PM

Hi Kingstreet,

the mortgage is with Santander (was alliance and Leicester) and they are adamant both parts of mortgage have to change or none! They have been consistent on this for years now.

Thrugelmir · 21 July 2017 at 5:19PM

dprovan wrote: »

the mortgage is with Santander (was alliance and Leicester) and they are adamant both parts of mortgage have to change or none! They have been consistent on this for years now.

Mortgage is still with A&L. As Santander are running down the old mortgage book. You would have to switch to Santander. They can set the terms on which they underwrite your business.

While you have savings. You also have card balances to clear in the future. Any real savings you have you should be used to overpay the 4.74% sub account. While of course retaining an emergency pot.

I'd retain the .99% above base product.

dprovan · 21 July 2017 at 6:09PM

Thrugelmir are you saying in my shoes you would keep the two existing products 4.74% (£74,837 balance) and 0.99% above BOE rate (£83,395) rather than moving all of balance to 5 year 1.89% rate?

The 5 year fixed of 1.89 saves me £140 a month!! That is £8,400 (minus the £999 fee to setup). I understand rates can and will change but cant see them going down so surely any change would mean I would be saving more than £140 a month..

I realise my knowledge on the subject is limited so I value all inputs

dprovan · 22 July 2017 at 12:00PM

What am I missing?

Surely a 5 year fixed at 1.89% is better than the 4.74% and 0.99% above BOE rate combined?

What cant I see in that

Thrugelmir · 22 July 2017 at 4:28PM

dprovan wrote: »

Thrugelmir are you saying in my shoes you would keep the two existing products 4.74% (£74,837 balance) and 0.99% above BOE rate (£83,395) rather than moving all of balance to 5 year 1.89% rate?

The 5 year fixed of 1.89 saves me £140 a month!! That is £8,400 (minus the £999 fee to setup). I understand rates can and will change but cant see them going down so surely any change would mean I would be saving more than £140 a month..

I realise my knowledge on the subject is limited so I value all inputs

I was merely thinking that you have a good household income currently. Therefore reducing with a lump sum and overpaying on a monthly basis the 4.74% debt would reap instant benefits. As ultimately what will dictate the cost of the mortgage over it's entire term is the amount you owe. Something you can control whilst over interest rates you have none.

What costs will you incur in remortgaging besides the product fee?

Hoping to remortgage

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