Do I remortgage £33,500 that's left

nevermindthedanger

This is a new one on me and I'm in need of some advice please?

I'm in a lucky position and very much appreciate the fact, but as a single owner of property with £33,500 left on the mortgage, I'm out of the current deal at the end of this month.

1, Is there time left to consider another deal?

2, Should I look around for something else despite the relatively small payment left? Will charges make the option of changing not worth the bother?

I'm paying £300 a month now which will change to £330 @ 7.35 on a standard variable rate with no early repayment charges.

Anything to steer me in the right direction will help.

silvercar

Ask your existing lender what they can do for you - it will save legal costs and a valuation fee.

If you move your mortgage you really want a no fees deal or any reduction in monthly payments will be eaten up by the up front charges.

nevermindthedanger

Why do the lenders offer a 'standard' rate when the term comes to a close?

Sounds like they leave it as late as possible with their renewel letter to trap you into a 'standard' deal.

But the question is ......... how much will they move if I confront them saying the offer given to me is not acceptable?

Ian_Griffiths_Halifax

I got your PM before I saw your thread.

With a mortgage the size of this, then as Silvercar says, you would really need a fees free deal to justify moving elsewhere.

Doing a 'Product Transfer' with the Halifax will probably be your cheapest option, taking into account the total overall cost.

You won't be able to 'haggle' with them. They will just offer you what they have.

When you have spoken to them, come back on here and let us know what you've been recommended and we'll be able to give our opinion on whether or not it's a good deal, but we will need to know the value of your house to be able to establish the Loan to Value ratio.

The Halifax will be coming out with some new deals over the next few days, so tomorrow isn't really a good time to be going to see them in my opinion. Go and see them towards the end of the week.

~daisy~_2

i shall be in a similar position next sept - my fixed rate will finish and i will still owe approx 15k on my mortgage
im guessing i will just have to accept svr until its paid off for that small amount ?

ixwood

There's a few fee free trackers around....

koexelek

nevermindthedanger wrote: »

Why do the lenders offer a 'standard' rate when the term comes to a close?

Sounds like they leave it as late as possible with their renewel letter to trap you into a 'standard' deal.

Anyone would think their main objective was making a profit, and not helping their customers :rotfl:

getmore4less

nevermindthedanger wrote: »

I'm paying £300 a month now which will change to £330 @ 7.35 on a standard variable rate with no early repayment charges.

First Direct Totaly(in and out) fee free offset tracker

Base+0.79% so 5.29% max LTV 80%

Not much around better than that.

People with loans smallerthan £25k can as long as income and LTV are ok go for this and just offset the excess funds.



They don't "offer" SVR thats the default follow on rate on most loans.
You have to ask what other option there might be.

Some lenders do followons that are much more reasonable like tracker rates.

People confuse the end of a fixed period with the end of a deal, the deal is usualy for much longer the full term just with different rates for different parts.

If the deal really was for the fixed first period and then repayable people would be in a mess just like the banks are( they borrowed on shot term lent out on long term).

nevermindthedanger

Thanks for the advice.

But one more question ........... my term expires at the end of this month, so how much longer can I leave it to arrange a new deal? Is there actually a cut off day?

KennyVader

nevermindthedanger wrote: »

Why do the lenders offer a 'standard' rate when the term comes to a close?

Sounds like they leave it as late as possible with their renewel letter to trap you into a 'standard' deal.

But the question is ......... how much will they move if I confront them saying the offer given to me is not acceptable?

um ... their "renewal letter"? Do you mean "reminder that your introductory terms are about to end as agreed" letter?

Lunar_Eclipse

getmore4less wrote: »

They don't "offer" SVR thats the default follow on rate on most loans.
You have to ask what other option there might be.

Not sure whether this comment was in reference to First Direct (mentioned earlier in the post) or not, but wanted to say that they do have a SVR which I thought most of their mortgages moved to. Or maybe it's only their fixed rate ones. Our fixed offset mortgage with them ends in Nov and we will move to their SVR, currently 5.5%.

Either way, their snapshot mortgages page on their website clearly lists the offers, fees and rate upon expiry of any offer if applicable.