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  • FIRST POST
    • Laze
    • By Laze 27th Jun 16, 7:55 PM
    • 51Posts
    • 63Thanks
    Laze
    26 month intro period ending... need help on terminology etc.
    • #1
    • 27th Jun 16, 7:55 PM
    26 month intro period ending... need help on terminology etc. 27th Jun 16 at 7:55 PM
    In a few months time our mortgage fixed rate for 2 years (which was 26 months all in) will be ending.

    We have been told over and over that we pay high (was a 5% mortgage and we pay £808 p/m roughly @ a rate of 5.19%).

    When I am allowed to look around for a new fixed term deal (which is what I want as Variable and trackers I don't fully understand and I kinda like knowing what is going out every month)

    I've looked around online and seen "remortgage" and more plainly, "mortgage". But what am I looking for? I'm positive it's not a remortagage as that is like re-buying your house in a "simple to understand way" isn't it? So is it the latter as this is just a mortgage that I am after, albeit a new one? how do I know how to tell people what I still owe, would it be my figure in full, or what the current lender (Lloyds) wants to pay them off?

    Sorry if that makes no sense!
Page 1
    • zx81
    • By zx81 27th Jun 16, 8:23 PM
    • 9,349 Posts
    • 9,176 Thanks
    zx81
    • #2
    • 27th Jun 16, 8:23 PM
    • #2
    • 27th Jun 16, 8:23 PM
    It's a remortgage (assuming you move providers).
    • sitesafe
    • By sitesafe 27th Jun 16, 10:54 PM
    • 311 Posts
    • 106 Thanks
    sitesafe
    • #3
    • 27th Jun 16, 10:54 PM
    • #3
    • 27th Jun 16, 10:54 PM
    if you're moving to another bank then they class it as a remortgage even if you're just going in with your existing balance. plus you have to do the full application i believe, proof of income, affordability, often fees involved...

    if you're staying with current provider then you are asking them for a retention deal/transferring onto a new product as in what can they offer you when the current deal ends? I believe it's not so likely that you'll have to do the full application and declare income etc if you stay with the same provider but it all depends on the provider as some might. mine didn't....I also had no fees to pay. I went from 4.99 to 2.79 5 year fix and that's with my current provider who don't have the best reputation for giving existing customers good deals.

    If you use the mortgage calculators on here then you can compare mortgage deals and include fees paid upfront....I'm just getting used to the terminology myself it does take up a lot of time and thought I find
    • sitesafe
    • By sitesafe 27th Jun 16, 10:56 PM
    • 311 Posts
    • 106 Thanks
    sitesafe
    • #4
    • 27th Jun 16, 10:56 PM
    • #4
    • 27th Jun 16, 10:56 PM
    In a few months time our mortgage fixed rate for 2 years (which was 26 months all in) will be ending.

    We have been told over and over that we pay high (was a 5% mortgage and we pay £808 p/m roughly @ a rate of 5.19%).

    When I am allowed to look around for a new fixed term deal (which is what I want as Variable and trackers I don't fully understand and I kinda like knowing what is going out every month)

    I've looked around online and seen "remortgage" and more plainly, "mortgage". But what am I looking for? I'm positive it's not a remortagage as that is like re-buying your house in a "simple to understand way" isn't it? So is it the latter as this is just a mortgage that I am after, albeit a new one? how do I know how to tell people what I still owe, would it be my figure in full, or what the current lender (Lloyds) wants to pay them off?

    Sorry if that makes no sense!
    Originally posted by Laze
    Just ring the bank and ask them what you owe....also might be good to ask them how much you will owe at the end of our existing deal.....
    • Laze
    • By Laze 28th Jun 16, 12:35 AM
    • 51 Posts
    • 63 Thanks
    Laze
    • #5
    • 28th Jun 16, 12:35 AM
    • #5
    • 28th Jun 16, 12:35 AM
    Awesome, thank you.

    So will have to contact Lloyds more around the time.

    What about paying a little into it, say, if I had £5k that I wanted to knock off what I owe after my deal ends? Who do I pay that to? The new lender?
    • Boredatwrork
    • By Boredatwrork 28th Jun 16, 9:29 AM
    • 46 Posts
    • 24 Thanks
    Boredatwrork
    • #6
    • 28th Jun 16, 9:29 AM
    • #6
    • 28th Jun 16, 9:29 AM
    You will pay it to whichever lender you are with at the time, its also worth asking your lender how much they will let you over pay before you occour charges, for many lenders its 10% per year, but worth to check.

    If you want to get a better deal when you swop, pay the 5k on your current deal, so when the rate changes it will reflect that.
    • dimbo61
    • By dimbo61 28th Jun 16, 10:08 AM
    • 9,135 Posts
    • 4,972 Thanks
    dimbo61
    • #7
    • 28th Jun 16, 10:08 AM
    • #7
    • 28th Jun 16, 10:08 AM
    You can also check online what new deals they have for existing customers !
    You need to know what Lloyds value your property at now and how much is the outstanding debt on the property.
    Now the £5,000 you have in other savings may help you get into the next LTV band Say 90% LTV or Even 85% LTV but you need Lloyds to tell you what the property is now worth.
    Recent house sales In your area might give you a clue.
    If the " Same " house next door sold for £20,000 more than you paid well Happy days.
    So look at the Llloyds website first as this is your starting point


    You can sometimes sign up for a new deal upto 3/6 months in advance but again speak to the mortgage centre at Lloyds
    • amnblog
    • By amnblog 28th Jun 16, 11:01 AM
    • 8,849 Posts
    • 3,364 Thanks
    amnblog
    • #8
    • 28th Jun 16, 11:01 AM
    • #8
    • 28th Jun 16, 11:01 AM
    You sound very much like you need some one to one advice. Consult a mortgage broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Phil H MLIA(dip) Cert PFS
    • By Phil H MLIA(dip) Cert PFS 28th Jun 16, 1:59 PM
    • 32 Posts
    • 12 Thanks
    Phil H MLIA(dip) Cert PFS
    • #9
    • 28th Jun 16, 1:59 PM
    • #9
    • 28th Jun 16, 1:59 PM
    There are multiple layers of terminology but from what you have posted most of it seems academic and can simply be summarised as;
    Standard Variable Rates, Trackers, and Discounts are all different but crucially can all vary - most of us won't worry about reductions at the moment, so in essence the issue is that all of them could rise.
    As there are currently no Capped rates in the market, the only alternative is a fixed option - which cannot vary for it's product term.

    You should then compare the rates available for short (ie 2-3 years), medium (4-5) and longer (7-10) and calculate (or have someone do it for you) the known costs and the potential rate increases required to offset those costs.
    • somethingcorporate
    • By somethingcorporate 29th Jun 16, 1:46 PM
    • 8,698 Posts
    • 8,425 Thanks
    somethingcorporate
    You sound very much like you need some one to one advice. Consult a mortgage broker.
    Originally posted by amnblog
    Really?

    Their questions are quite straightforward and needn't cost them.
    Thinking critically since 1996....
    • ThePants999
    • By ThePants999 29th Jun 16, 4:43 PM
    • 320 Posts
    • 319 Thanks
    ThePants999
    What about paying a little into it, say, if I had £5k that I wanted to knock off what I owe after my deal ends? Who do I pay that to? The new lender?
    Originally posted by Laze
    Generally speaking, a solicitor will handle the remortgage. Behind the scenes, they obtain a redemption statement from your old lender showing what would need to be paid to remove the old mortgage, and they commit to the new lender that the funds will be used to repay the old mortgage and the new lender will have the first/only charge on the property. The new lender releases the funds, the solicitor pays off the old mortgage.

    So if you want the new mortgage to be smaller than the old mortgage, you'll commonly pay the difference to the solicitor in advance, so that when they receive the new monies, they have enough to immediately repay the old mortgage.
    • Laze
    • By Laze 17th Oct 16, 11:12 PM
    • 51 Posts
    • 63 Thanks
    Laze
    Really?

    Their questions are quite straightforward and needn't cost them.
    Originally posted by somethingcorporate
    Thank you, I looked at that post and was just in disbelief. Yeah, real helpful that.

    You can also check online what new deals they have for existing customers !
    You need to know what Lloyds value your property at now and how much is the outstanding debt on the property.
    Now the £5,000 you have in other savings may help you get into the next LTV band Say 90% LTV or Even 85% LTV but you need Lloyds to tell you what the property is now worth.
    Recent house sales In your area might give you a clue.
    If the " Same " house next door sold for £20,000 more than you paid well Happy days.
    So look at the Llloyds website first as this is your starting point


    You can sometimes sign up for a new deal upto 3/6 months in advance but again speak to the mortgage centre at Lloyds
    Originally posted by dimbo61
    So in this case, and this goes out to anyone for help, where I'm looking on a site and it states:

    Your borrowing requirements of £142,500 over 25 years repaying capital & interest on your property valued at £170,000. This makes your LTV 83.82%

    Where £142,500 is the figure on my account that it states is what my mortgage is at (I know it's not a redemption figure, but it would be in this case bank to bank - as I don't see any figures that say I have to pay this when "fees" are listed either zero or not) and where £170,000 is the rough property value now.
    Last edited by Laze; 17-10-2016 at 11:14 PM.
    • SavingSteve
    • By SavingSteve 18th Oct 16, 7:04 AM
    • 476 Posts
    • 205 Thanks
    SavingSteve
    What is your question?

    And did you speak to lloyds, what will they offer?
    • ViolaLass
    • By ViolaLass 18th Oct 16, 7:54 AM
    • 4,725 Posts
    • 6,473 Thanks
    ViolaLass
    Really?

    Their questions are quite straightforward and needn't cost them.
    Originally posted by somethingcorporate
    The help needn't cost them either. If I knew as little as the OP, I'd want a broker.
    • Kynthia
    • By Kynthia 18th Oct 16, 8:16 AM
    • 4,700 Posts
    • 6,715 Thanks
    Kynthia
    OP many do go to a broker when looking to remortgage to get advice on the best deal out there with other lenders. This is particularly true if anything about their position or property means not every lender would accept them.

    A simple option is a retention deal with your current lender as it's not a full new application with a solicitor, affordability checks and possibly fees.
    Don't listen to me, I'm no expert!
    • fewcloudy
    • By fewcloudy 18th Oct 16, 1:19 PM
    • 123 Posts
    • 65 Thanks
    fewcloudy
    Thank you, I looked at that post and was just in disbelief. Yeah, real helpful that.
    .
    Originally posted by Laze

    What? Disbelief at the very idea of getting help from an expert who could explain things that you don't understand, and possibly save you thousands?


    Sure, some of your questions are 'straightforward' to answer on an open forum, but your opening post suggests a low level of understanding mortgages, and your further posts confirm that. I can't see what is unbelievable about suggesting you get some proper advice. Perhaps if you had done so a few years ago you wouldn't have been paying interest at 5.19% for the last 2 years...


    fc
    Last edited by fewcloudy; 18-10-2016 at 2:33 PM.
    Feb 2008, 20year tracker with Sproggit and Sylvester, 0.5% + base for 2 years, then 1% + base for life of mortgage. Overpaying like crazy, nothing lasts forever.
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