My mortgage deal is coming to an end

jasmin10

I have looked at comparison sites etc but they are all so confusing. Is anyone able to help/advise etc. When you go into an Estate Agents to buy a house you see someone there that compares ALL the mortgages and advises you on the best one and there is no charge for their help. Who would I go to get this sort of help for Free or is it only when you buy a house.

My situation: - deal runs out in October. I have been with Nationwide since year dot. My remortgage would need to be for 91k over 25 years and for me to be able to make overpayments and don't want a fixed or capped and not bothered how long I am tied in for (5 yrs or 25yrs). I bought my house only in December for £155. My current thing with Nationwide is a tracker at 4.87%.

I have spoken to Nationwide today who have said they have a mortgage tracker for 3 year, no fee at 5.74% or one that is over 25 years at 5.98%. With these sort of percentages it's going to add over £100 per month onto the mortgage taking to over £640 Per month which to be honest will really stretch us.

Does anyone know of any deals that is better than what NW is offering or of somewhere I can go to get them to look over it for me for free?

tomstickland

I used London and Country, telephone based all of market broker, no fees.

Rates have gone up since 2 years ago and those you quote are pretty good.

arkie

5.74% is very good you wont get much better
L&C only work from a panel which represents the whole of the market, they are some lenders who are not on their panel and therefore dont offer them products
Take the rate NW are offerring , if the extra is a bit of stretch extend the term to reduce your payments ( assuming you are not on interest only)

koexelek

arkie wrote: »

5.74% is very good you wont get much better

Agreed. Pound for pound, taking into account the reasonable £599 arrangement fee, that deal is very hard to beat.

dimbo61

This is a tracker at 5.74% at the moment and the £100 increase will really stretch you ! What will happen if rates go to 7/8/9% over the next three years.
If your financial situation is that tight might a 3/5 year fix be a good idea so you have security of mortgage repayments each month !

russellhq

koexelek wrote: »

Agreed. Pound for pound, taking into account the reasonable £599 arrangement fee, that deal is very hard to beat.

This one might just do it:

Yorkshire Building Society are offering 5.54% fixed for 2 years, product fee 895.

jasmin10

Thanks for all your replies. I think I will take the NAtionwide 5.74, they did say on the telephone that there wasn't any arrangement fees as they have taken them off all there products barr one which was the 2 year tracker.

I don't want a fixed mortgage as if things really rocket it will be a big jump. Things are tight although £100 extra at the mo would be ok, just if things do go up like someone said 7, 8 or 9 - well we will just have to cross that bridge when we come to it. We could extend the term but to be honest we don't want to as over the last 3 years we have made overpayments to shorten the term from 30 years. At least it is an option.

beecher

jasmin10 wrote: »

I don't want a fixed mortgage as if things really rocket it will be a big jump. .

I don't fully understand the logic in this. If interest rates do rocket, then you'll be hit immediately if you're on a tracker. If you're on a fixed rate then at least you have prior warning and are cushioned from their impact for longer. Surely it makes more sense to take out as long a fixed rate as you can find, and overpay as much as you can in order to provide yourself with some security?

dimbo61

Nationwide also do a 5 year fixed at 5.78% with no arrangement fees to existing customers who have over 25% equity.
This is very important if you cant afford big increases in the mortgage over the next 5 years then look carefully at this deal !
You can still overpay by £500 a month if you have the spare cash.
I would snap it up and get on with your life and clear the mortgage ASAP
GOOD LUCK

jasmin10

I must admit I had never thought of a fixed rate mortgage in that way. The way I looked at it was when on a tracker and they go up bit by bit the odd 20 increase was nothing but if on a fixed for so many years and they went up say 2% at the end of the term I just look at the fact of having to fork out and find an extra £200. I'm not very knwledgable on Fixed deals as I have only had variable ones as fixed has also scared me a bit

beecher

jasmin10 wrote: »

I must admit I had never thought of a fixed rate mortgage in that way. The way I looked at it was when on a tracker and they go up bit by bit the odd 20 increase was nothing but if on a fixed for so many years and they went up say 2% at the end of the term I just look at the fact of having to fork out and find an extra £200. I'm not very knwledgable on Fixed deals as I have only had variable ones as fixed has also scared me a bit

Best bet is to fix and 'keep up' with any BoE rate rises by overpaying. You can use a mortgage calculator to work out how much every extra 0.25% increase would cost you, and overpay by that much. Your overpayments will come off the capital which is an added benefit.