Difficulty re-mortgaging due to loan size.

Boo-Rumble

I have an offset mortgage with Intelligent Finance and the discount period is coming to an end in December. When I took the loan 2 years ago it was very easy for me to find lenders that would loan over £1m. This time round, for obvious reasons it has been much harder. I am keen to stick with an offset as it suits me for tax reasons but there appears to be very few of this type of mortgage available, particularly when you factor in the loan amount which is around £1.5m, about half of the value of the property. I have managed to find a tracker at + 1.49%, is anyone aware of a more competitive deal?

Toughluck

BM solutions do up to £2m Arr fee is a whopping (for you anyway) 1.5%!!!!

What is the fee with IF? Bank of Scotland do up to £5m 0.25% arr fee 1.94% >BBBR. Therefore that fee isn't too bad due to your loan size.

Boo-Rumble

The fee on the +1.49% tracker is £699.

Toughluck

wow. Don't move from then you silly person!!!!! I struggled to find them ones for you!

luckyfool

Your problem is that most offset lenders are capping loans at £1,000,000 just now. If you can sacrifice the offset flexibility then you can get the rate under 6%, e.g. 5 yr Fixed Rate from C&G for 5.84%, or variable tracker for full mortgage term at 5.99% from the same lender.

herbiesjp

Dont be blinkered by looking offset

You could look for fully flexible deals - so you overpay amounts into your mortgage and then take the funds back out again when you want

Have you looked at these options?

Boo-Rumble

I haven't looked into this type of deal as I was under the impression that a penalty would have to be paid if I made lump repayments. Is this incorrect?

herbiesjp

With some schemes yes there limits and therefore penalties

With other schemes - the limits are generous without penalties

Boo-Rumble

Could you suggest lenders that I might approach?

Toughluck

N Rock. Unlimited overpayments on their fully flexible mortgages. As mentioned the loan size could be an issue so I'd go back to the lenders websites people have already mentioned.

herbiesjp

Boo-Rumble wrote: »

Could you suggest lenders that I might approach?

sorry - not really. Although some people have thrown some name in the hat for you above

As i know nothing about your circumstances I would not want to tell you to go to a lender, apply and then get declined for whatever reason - which could harm your credit score

There may well be a couple of deals just slightly more competitive, or maybe slightly higher rates, but with greater flexibility