Remortgage Advise Please

misfire22

My current deal will finish at the end of September and I need some advice on what to do then.

I am currently with Nationwide and have been offered various deals with them but wondered if there are any better ones to be had.

I have a part/part mortgage with £28000 on endowment and £45000 on repayment on a house valued at £210000. My endowments cover £50000 but I have reduced them in case of shorfall. Is that the right thing to do?

Any help greatly appreciated!!!!!

happybroker

planning for possible shortfalls in endowments is a great idea.

you haven't posted what deals you have been offered by nationwide so it's hard to say if you can get better.

misfire22

Sorry....

They offered lifetime tracker +0.98% no reservation fee
2 yr tracker +0.98% - 5.98% no fee
2 yr tracker+0.98% - 5.98% £599 fee
2yr fixed 6.18% fee £599
2 yr fixed no fee 6.58%
3 yr tracker +0.74 - 5.74% fee £599
Their svr is 6.49%

The 3yr would be the one I most prefer

Many Thanks

herbiesjp

Nationwide tend to offer good deals to both exisiting client and new borrowers.

However in the current climate, some lenders are starting to reduce their rates, so it could be that you may find a better deal with another lender.

Obviously you will have to taek fees into account when comparing what Nationwide will offer and what other will offer.

When you say:

My endowments cover £50000 but I have reduced them in case of shorfall. Is that the right thing to do

Do you mean you have reduced the interest only part of your mortgage? Not that you have reduced the amount you are paying into them?

misfire22

Sorry if I was not too clear!

My endowments are supposed to cover £50,000. As I am worried about shortfall I have guessed at worst case scenario and only covered £28,000 as interest only on my morgage, but I am still paying full amount into my endowment policies.

This was a "worst case" scenario and I may be able to up this to around £35,000 as my latest statement shows this as worst case.

In that way I may be able to reduce my morgage payments slightly. If I go with Nationwide, my premium is going to rise by around £50 pm which I will find crippling which is why I was searching for a solution.

Thanks again

herbiesjp

If you are finding £50 pm crippling you should not be looking at a tracker rate - where there is the potential for interest rate rises and increase in your mortgage payments potentially over £50pm

You might want to look around and see what fixed rate you can find

misfire22

I have had a look but most appear to charge fees to switch, arrange etc so I will negate the savings.

I also dont really un derstand the whole mortgage thing and am afraid to make a big mistake in todays fluctuating market

happybroker

I can understand your concern over the savings being affected by the lender's fee but if that is the price you pay for knowing that you will be able to afford your mortgage for a given period of time you need to consider is it worth it?

herbiesjp

misfire22 wrote: »

I have had a look but most appear to charge fees to switch, arrange etc so I will negate the savings.

I also dont really un derstand the whole mortgage thing and am afraid to make a big mistake in todays fluctuating market

Savings isn't the issue here

Having a mortgage that remains affordable to you is

If you are worried about making a mistake then have a word with a whole of market mortgage adviser - fee free if possible, to keep your costs down

They will look at what has been offered and compare against the rest of the market and your need for a deal that does not increase, and then let you know what your best option is.

misfire22

I was prevoiusly on a tracker rate at -0.13% below base so I am looking at an increase of around 1%. In one jump I find this a difficult move but usually rates increase gradually which I find affordable

misfire22

Just for info....Nationwide have now dropped the £599 fee for existing borrowers!!!