remortgagingat end december. please help

eharkin1

Hi there

need some advise here. We are currently on a 4.8% fixed rate mortgage with the halifax and the special rate ends on 31/12/04 and goes up to 6.75% variable. We are currently paying £293 per month on a £50400 mortgage. The amount we have left to pay is £49007 and our house is worth 95000. We will have been on the fixed deal for two years and 1 month when it finishes. Therefore we will have a 22yr 11month left on our mortgage.

Anyone know of any good deals out there? We are confused as to wether to go for a fixed rate again or a tracker as we're not sure how the interest rates are gonna go? What is the most popular wisest choice. I cant find any info to see what people forecast the interest rates doing in the next two years and it wont be worth us getting a fixed rate if the forecast is that they will decrease. we are looking to move home in the next couple of years so dont want extended redemption penalties.

Anyone got any good tips/useful info???

Robert_Sterling_3

Hi there

need some advise here. We are currently on a 4.8% fixed rate mortgage with the halifax and the special rate ends on 31/12/04 and goes up to 6.75% variable. If you tried very very hard you might be able to get a higher rate than this

Anyone know of any good deals out there? YES

We are confused as to wether to go for a fixed rate again or a tracker as we're not sure how the interest rates are gonna go? Nobody is sure

What is the most popular wisest choice. Seldom is the most popular choice the wisest choice.

More seriously:-

You should get a big improvement on your current offer from Halifax.

Start by looking at https://www.nationwide.co.uk under mortgages.

See 2 year, 3 year, 5year fixed or tracker rates.

About 5% plus £349 arrangement fee.

Meanwhile someone else from MSE will probably suggest something even better.

When you know what you can get give Halifax a chance to equal or beat it.

Happy Christmas.

MarkyMarkD

I think Halifax are one of the lenders which won't let existing borrowers have the same products as new borrowers. Please correct me if I'm wrong.

Many commentators believe rates will rise one more time (by another 0.25%) and then stabilise and fall over the next few years. Others think they've already reached the peak.

Not many commentators forecast increasing rates.

So, as Martin says, if you need certainty, buy a fixed rate. If you are not borrowing to your limit and can afford to take a degree of risk, buy the product with the best headline rate irrespective of the fact that it's not fixed.

You talk about moving within "a few years". Whether this is important depends on two things:

(1) Does the product you are considering allow "portability". Most do. This means that you can keep the product when you move without having to pay any penalties.

(2) Are you certain you won't move within 2 years, 3 years, or 5 years, the typical penalty periods on discounted/fixed products. If so, then you should buy something which ties you in for the relevant period because you will generally get a better rate.

You can get 2 year discounted for 4.24% (best I know of - Savills exclusive) and 2 year fixed for around 4.69%. Given your small loan value, you might to better to pay a slightly higher rate, but choose a product with free legal fees and no application fee.

The best buys link on the left hand bar takes you to some useful comparison sites - look at a few and you should get a better idea, and then try going back to Halifax as PR suggests (although I doubt they will beat the best buys).

herbiesjp

Hiya

The general consensus, I believe is that many analysts, reports, market research states that the 5 interest rates rises have had the desired effect of cooling the housing market.

So will they go up a little, will they stay put or could they go down? The million dollar question. If the economy slows a little more, it may make the BoE move look a little too hasty.

But the bottom line is nobody can predict what will happen - to base your decision on a forecast is a little risky. You should look at your current afforability and see what room you have for interest rate changes.

If you like the certainty of fixed rates, then chose one that allows overpayments and reduce your mortgage and term more quickly this way.

Without knwoing your actual situation, goals, or ambitions, I do not think anyone would be in a position to advise or recommend one rate over another.

eharkin1

Right, i have spoken to halifax and they have given me these offers below, before i go back to them and ask for a cheaper deal is there anyone who knows any cheaper deals or can work out the maths for me as to what is the better deal.

My house value is £92500 and the remaining mortgage left to pay is £49007. We want it to be on 23 yr mortgage as we have already been on for two years.

halifax have offered me a tracker at 5.44% going up to 6.6% from 29/02/08 after fixed deal has ended. The arrangement fee is £199. Rate above BOE rate is 0.69%

Or they have offered me a 2yr fixed rate deal at 5.99% until 28 feb07 then moving up to 6.9%. Arrangment fee of £199.

Both of these deals are calculated monthly and are transferable if i want to move. They both have penalties but only within the special rate periods.

Somebody help! The numbers are swimming in my head and im getting more and more confused by the day.

foxmeister

Hi there.

I'm in the same boat as you as my fixed rate with the Halifax runs out 1/12/04 and the deals that they offer existing customers are rubbish in my opinion.

Anyway I'm currently re-mortgaging with Nationwide and I must say the whole process is going extremely smoothly. Should be completing in 20 days.

I worked for a bank years ago so I have had a good look round at the deals on offer and done my 'homework'.

Nationwide seemed to be the best - fixed rate for 2 years 4.95% and the only fee to pay is £349 - no legal/valuation fees etc.

Good luck ..

cloud_dog

Hi there.

Nationwide seemed to be the best - fixed rate for 2 years 4.95% and the only fee to pay is £349 - no legal/valuation fees etc.

Good luck ..  ;)  

I also re-mortgaged with Nationwide and the process (except my old lender) was relatively painless but...........

.........please remember with the deals where you are not paying for legal expenses, i.e. Nationwide, the solicitors are technically only acting in the interest of their client - Nationwide.

Normally the lender have their legal people and you have your own solicitors.

Having said all this it is not really in Nationwides interest to annoy new customers and my experience of their legal company was extremely good, i.e. they noticed from my old lenders small print if I redeemed on the 1st of the month I would have to make a months payment and that it would not be refunded, so..... fairly happy with the transfer.

cloud_dog

gtrevor

I'm with Halifax and current fixed rate of 3.99 due to end at end of Dec.

They won't budge on their offers that they have gone through with you - I told them that these were nothing like competitive, and the mortgage advisor said that she knew that but they wouldn't offer anything else. I then politely told her that we should stop the meeting now then as I would be moving elsewhere....

Tesco are doing a 3 year BOE tracker - same as Nationwide but for 3 years rather than 2 ... free legals , valuation etc...

knuckledragger

Why not use the moneysupermarket link and have a look at what's available with true cost factored over however many years you want to commit to your next lender for.

eharkin1

>:(May i just say that i think the Halifax are very stingy people. Just rung them up to ask why they are offering better deals to remortgaging customers from elsewhere but giving me such a pathetic deal for staying. They wont budge on the matter!

Surely by me staying with them its less hassle than arranging a new remortgaging customer. The offer i found was for 4.99% for a fixed yet they want to charge me 5.99%!!!!!!

I think i'll be moving from them pretty quick!!!!!! >:(

eharkin1

gtrevor, have you found a good deal yet??

Does anyone know how long it will take to arrange a remortgage elsewhere?