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Waiting to re-mortgage
herbiesjp
Posts: 8,499 Forumite
I thought I would post this in case it helps others on here.
It's been my experiencce lately that people have been waiting and waiting to re-mortgage hoping for new better deals to come out.
Some have lost out on deals as they have recently been going up and some think that they may be able to get onto a new deal now that rates hopefully could be going down.
One important thing a lot fail to remember is the fact that house prices are also going down.
So whilst a new rate at say 75% or 80% may be available, people who are borderline at those levels could well find that having stalled will mean being above those mortgage levels of 75% or 80% now, as their house price has decreased
The same goes for the actual deal that you choose - think carefully about opting for a short term fixed/tracker etc - as when you come the deal you could well find your house value is lower and therefore need to go for higher mortgage deals for the higher loan to value brackets. Potentially opting for a longer deal, will mean coming back in say 5 years time for a new mortgage deal when the market is hopefully recovering.
Those who have plenty equity will not be so affected by this, but those who are borderline on the various tiers the lenders have for rates, should be careful about stalling much longer
I don't have a crystal ball to see how rates or house prices are going to go - but just thought some people might want to think about these before deciding what to choose
Hope this helps some of you
It's been my experiencce lately that people have been waiting and waiting to re-mortgage hoping for new better deals to come out.
Some have lost out on deals as they have recently been going up and some think that they may be able to get onto a new deal now that rates hopefully could be going down.
One important thing a lot fail to remember is the fact that house prices are also going down.
So whilst a new rate at say 75% or 80% may be available, people who are borderline at those levels could well find that having stalled will mean being above those mortgage levels of 75% or 80% now, as their house price has decreased
The same goes for the actual deal that you choose - think carefully about opting for a short term fixed/tracker etc - as when you come the deal you could well find your house value is lower and therefore need to go for higher mortgage deals for the higher loan to value brackets. Potentially opting for a longer deal, will mean coming back in say 5 years time for a new mortgage deal when the market is hopefully recovering.
Those who have plenty equity will not be so affected by this, but those who are borderline on the various tiers the lenders have for rates, should be careful about stalling much longer
I don't have a crystal ball to see how rates or house prices are going to go - but just thought some people might want to think about these before deciding what to choose
Hope this helps some of you
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Comments
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I think that's good advice, and I think people should be wary of gambling too much. Someone with a high LTV and who is financially overstretched is taking a bit risk on simply hoping that rates that they can get will come down in my opinion.0
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Definitely good advice as beecher says
Sometimes in the all the blur to get a good deal, you tend to forget about these "little" things
I think I'm borderline 75% due in January for a re-mortgage so will get cracking now looking for a deal.
So thanks for jogging the brain cells
Can you help? Have sent you a PM herbies :beer:0
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