Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Noobie2011
    • By Noobie2011 17th Jul 17, 8:18 AM
    • 89Posts
    • 11Thanks
    Noobie2011
    Re-Mortgage Options
    • #1
    • 17th Jul 17, 8:18 AM
    Re-Mortgage Options 17th Jul 17 at 8:18 AM
    Hoping I can get some advice on here around my Re-Mortgage options.

    I am currently in the process of re-mortgaging and have 2 options in front of me it seems which our broker is giving us and want to make sure I am making the right choice.

    Briefly our situation is we are currently on a Variable rate with current lender who is an adverse lender due to us not having very good credit when initially bought the house. The current rate is around 5.6% which is working out as £680 a month at the moment on a Mortgage of £106k left and the house is currently worth around £147k. On top of this we have a 2nd charge on the property which is around £15k costing £440 a month and we are looking to include this in our re-mortgage so the new amount we are looking to borrow is around £121.

    Our situation is afford-ability wise we are okay but my credit rating at the moment is in the poor category whereas my partners is in the excellent category. On top of this her credit commitments and wage are in a better position than mine at the moment.

    So our broker has come back and advised we are looking at a rate of 4% for 121k on a variable rate if we did it as a joint re-mortgage however he has also said we could be looking at getting potentially a 2% rate if we looked at transferring my equity/deeds to my partner and she applied on her own as he said afford-ability is still fine with her wage and the amount we need.

    The figures coming back are £670 for the 4% and £537 for the 2% so a difference of around £150.

    So to try and decide which is the better option I am assuming things like the fees and type of re-mortgage we get will all be similar apart from the % rate so I can go off what we know.

    My view is the 4% deal saves us around £440 extra a month as opposed to the 2% deal which will save us about £590 a month. However it will cost initially £400 to do the transfer so that would wipe out the extra £150 savings on the 2% for the 1st 2.5 months and then we would need to factor in paying that £400 again when I wanted to go back on the deeds. However it is a lower rate so after the 2.5 months we would be saving the extra £150 again. Plus with us looking at a variable I presume we would be safer on the lower % as one risk with variable is the % could rise.

    Another thing to mention is we are only looking to be on this deal for between 6-12 months as we are looking at relocating or trying to at least negotiate a better deal once my credit rating improves so not sure if that makes a difference at all.

    I have also thought me not being a mortgage holder would not be as good for my credit rating as if I was paying a Mortgage and would questions be asked when we came to re-mortgage again in terms of the lender wondering why I took myself off the mortgage etc

    Thanks for any help
Page 1
    • amnblog
    • By amnblog 17th Jul 17, 9:17 AM
    • 9,658 Posts
    • 3,724 Thanks
    amnblog
    • #2
    • 17th Jul 17, 9:17 AM
    • #2
    • 17th Jul 17, 9:17 AM
    You should be discussing this with your Broker.

    Not with posters on here who do not know your case in depth and in most cases are not qualified to assist you.
    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.
    • Noobie2011
    • By Noobie2011 17th Jul 17, 10:57 AM
    • 89 Posts
    • 11 Thanks
    Noobie2011
    • #3
    • 17th Jul 17, 10:57 AM
    • #3
    • 17th Jul 17, 10:57 AM
    You should be discussing this with your Broker.

    Not with posters on here who do not know your case in depth and in most cases are not qualified to assist you.
    Originally posted by amnblog
    I am discussing with my broker and did not mention that as presumed it would be a given.

    My purpose for coming on here is to see what other people experiences are as it is always good to get a 2nd opinion and highlight things to think about that may not be obvious to me or in some cases a broker.

    After all that is what forums are for
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

166Posts Today

2,011Users online

Martin's Twitter