Advice wanted please...

laurie77

Hello everyone, this is such a fantastic site and this is my first post so please bear with me.:beer:


I am really quite confused as what to do about our remortgage. Our situation is as follows:

Mortgage with HSBC, due to re-mortgage on 20 November 08
Our current rate is 5.29 - .96 discount off HSBC VR, with standard payment of 1,085. The mortgage is repayment on 185,377 over 317 months. Our house is valued at approx 270k. We have no other debt or bad credit.

My queries are:
1. with the BER moving, should I opt for a tracker rate? or stay with discount?
2. HSBC has advised that they are unable to give me any new mortgage deals until my renewal letter comes through. Therefore should wait a few weeks?.... But I am worried that the deals with HSBC and others will get worse! Do you think I should get onto a deal now ( by reservations ) or wait for a few weeks to see how the market pans out?
3. Does anyone have any good mortgage deals they could advise me on?

I think this is rather long so will stop here....

Any advice is greatfully received

Laurie

herbiesjp

Hi Laurie

Welcome to the board

A tracker rate is better than a discounted rate.

A tracker rate has to move in line with with change in BoE rate - subject to any minmum levels the lender may have.

A discount rate, is a discount offered from the lenders SVR - and there is no obligation on the lender to move the rate in relation to BoE changes

You can indeed find deals at the moment with other lenders if need be - and do it in such a way that you would not be out of pocket if you did not decide to proceed with that lender come nearer the time

As for good deals - that will depend on your circumstances and what exactly it is that you are looking for from the mortgage itself

laurie77

Thanks Herbies.

We are really looking to keep our monthly payments low. We are lucky as no other debt and house equity is around £90,000. Our income is approx 50k - one wage.

do you feel that it would be advisable to wait a few weeks to see how the finance climate pans out - or will it not really change...?

thx L

herbiesjp

I personally think it is worthwhile looking now - and seeing if there is a deal that you like the look of. If your deals ends in November, then you ought to be looking asap in order to minimise the time you are on SVR. Re-mortgages can take 4-6 weeks to complete

At least that way you have a deal secured.

If rates do then go lower, you can then opt for those instead - but you need to do it a a way that you are not out of pocket if not proceeding with the first one