Remortgage advice req--Northern rock

mcowan77

hi folks
looking for some advice

my current NR fixed rate ends on 01/10/08..

looking to remortgage

estimate value of house - 105,000 - (house nxt door currently on market fixed price)

got roughly 77750 left to pay.

Prob is i need to pay back "help with cost", of £1000 if i remortage b4 01/04/09.

so if i add that onto mortgage i would have 78750 left to pay...bang on LVT 75%

could get a decent fixed rate with this LVT, but if house valuation is below 105,000 ...i wont be able to get a decent rate.


dilema - should i continue paying NR till 01/04/09, and then re-mortgage or pay help with costs and gamble on the valuation

currently paying £474, which will rise to £532 with NR


any advice greatly appreciated


cheers

mick


so

arkie

look around now, the variable rate is high with Nothern Rock, they are better rates out there.
Contact a whole of market mortgage broker

herbiesjp

Yep - so you will be in the 6 month overhang period for the Help With Costs.

So for 6 months you will be paying an extra £58 pm = £348

I know what I would do.

Decide to stay with NR for that extra 6 months, however apply for a new mortgage deal around October - if there are good rates available.

That way you do not pay NR £1000, and you secure yourself a good deal for after 1/4/09.

I'd suggest to go via a broker, in order to make sure you get a deal and offer letter that will be valid for long enough to make the scenario work for you.

Having said that, if £1000 is going to put you bang on 75%, I would think you will be over 75% anyway. Falling markets and the fact the property next door has not actually sold for that price would indicate to me that you will fall into the bracket over 75%

Ian_Griffiths_Halifax

You'll be close on the LTV anyway as the valuers wouldn't use the example of next doors price. It would be valued for remortgage purposes and generally that results in a down valuation.

You could look for better deals just now, but leaving the remortgage until the Help With Costs penalty ends would save you £1000 at a cost of £348 in higher payments (subject to rates not going up), Net saving being £652.

I suspect you would need a Free Valuation, Free Legal Fees deal to make it worth while moving now, but if you need security of knowing what your outgoings are going to be, then find a Whole of Market broker to do you a comparison.

mcowan77

i dont fancy paying the help with costs, so im prob going to take my chance and wait till 01/04/09 to remortgage....

cheers for the advice folks....

would employing your own surveyor, as opposed to the banks give you a better valuation (i.e tell them whta you need the house to value at!!!)

herbiesjp

mcowan77 wrote: »

would employing your own surveyor, as opposed to the banks give you a better valuation (i.e tell them whta you need the house to value at!!!)

Er.... No

I think you already know it doesn't work like that:rolleyes:

shell1000

most of the good deals i could see were for 75% LTV and my property is just over this due to recent falls in prices, im left with a 76.67 and the banks wont budge on it. so ive gone for a first direct deal, 80% ltv so i dont have to worry if its enough, the deal for a three year fixed is 5.95 which isnt too bad, arrangement fees are 600 approx plus survey, which is also pretty good.

A good indicator for me too is that the variable rate at first direct is just 6%. Nationwides is 6.5% and alliance leicester my current lender 7.2% so im sure if you wanted to swap you could consider first direct.