One Year Fixed Rate Mortgage

gingercheapskate

We currently have 2 mortgages on our house as we had some bad advice and got tied in for 2 years only to move a year later and have to take out another mortage. Now we want to have just one mortgage but cannot put them both together until next July.

Would you advise taking out a one year fixed or leaving the current mortgage to go onto a variable for the year? (bearing in mind fees etc will it be worth fixing it for a year?)

Both mortgages are with Nationwide so is it likely they would 'do us a deal' on the initial mortgage until we can put both toether next July?

Any advice appreciated.

lisyloo

Would you advise taking out a one year fixed or leaving the current mortgage to go onto a variable for the year?

Depends on the fees.
You could look at a tracker without penalties.

You need to compare the savings with the extra fees.
You may well find that staying on SVR is cheapest due to the fees.

so is it likely they would 'do us a deal'

I am pretty sure that lenders do not "do deals".
But have a look at their other products to see whether a switch makes sens.
Should be on the website under a section called something like "existing customer deals".

minimike2

Nationwide dont do second charge mortgages, so it sounds to me like you moved, ported your original mortgage and then topped up for a more expensive purhcase, resulting in the mortgage being in two parts. If this is the case then it isnt necesarrily bad advice, it could have been the best thing at the time.

All it means is that you have two different products running. If you want it all in one, then you need to remortgage when both are out of any tie-in period. Most lenders will not allow you to remortgage to themselves, so a brand new lender would be required.

As far as what product to chose in the mean time it depends on a number of factors.

What is the outstanding balance of the part that the deal is ending on?

gingercheapskate

Thanks for your replies- we have approx 74k remaining on the part the deal is coming to an end on. Cheers MiniMike2

minimike2

On £74k its going to make a massive difference what the fees would be to take a new deal, as its right on the borderline of weather its worth paying a fee for a product or not.

I would suggest that just over one year you wont get much benefit from a fee bearing product.

If you can find out exactly the deals on offer and post them that would be great, can then compare the costs.

gingercheapskate

LenderNorwich & Peterborough BSProduct NameFix 1yr/BRT 2528Type of MortgageFixedInitial Rate5.34%APR6.70%Max LTV85%Actual Cost Over 1 Year£5,691.76Monthly Repayments£450.98Scheme Duration1 YearLender's Base Rate7.05%Portable Cashback£0 paid to you on completion.Early Repayment Charge5% of outstanding loan first 3 yearNumber of Monthly RepaymentsNot available

Paid upfrontAdded to mortgageOn completionValuation Fee£280.00 Booking FeeArrangement Fee£595.00 Total Amount£280.00 £595.00 £0.00

This came up cheapest on moneysupermarket but do all lenders charge for valuation do you know? I agree it is looking like it may not be worthwhile and may be better to wait until next july abd just get a new product for both tho. ETA Sorry i cut and paste this and it hasn't come up very clearly. Hope it makes sense!