Do I remortgage £33,500 that's left

Lunar_Eclipse

nevermindthedanger wrote: »

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?

Is this for real? You need to check your paperwork, but since you said your current deal expires at the end of this month, it would thus appear that your cut off day is 31st October.
Which is cutting it very fine for organising a new deal. Six weeks with a new lender would be good going. Your existing lender might be able to offer you something in time, but worth knowing that you can arrange most mortgages between 3 & 6 months in advance of funds being drawn down.

Ian_Griffiths_Halifax

nevermindthedanger wrote: »

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?

To do a Product Transfer with the Halifax, it needs to be keyed into their system before 26th of the month, to take effect the following month.

Gorgeous_George

I assume the OP is not on a Northern Rock Together mortgage and that he didn't pay £20K for his house and it's now worth £12K at best. The extra unsecured borrowing went towards a 90-inch telly that only fits in the lounge diagonally.

You could take a larger mortgage and offset the extra if it means getting a better rate.

You just need fees free (or almost fees free) to make it worthwhile.

Or stooz it!

GG

completlyconfused

Hi, my mortgage is with Lloyds TSB, and is fixed until 01/11/08. I have a part endowment and repayment mortage, the endowment ends 23/01/2012 and was for £17323 (with Prudential). The repayment part ends 05/02/2018 and was for £23000.

I had a meeting with Lloyds in September where I was advised to leave things as they are because their SVR of 6.5% works out cheaper that any deals they had. I went back today and was told the same, and if the SVR goes up I can then change to one of their deals.

They didn't have a 3 year deal with no product fee, for the amount I still owe £32000, so I would have to opt for a 2yr deal, then I can only have a one year deal (do these exist?) because of my endowment ending. I don't want to pay any extra money because the endowment ends before the repayment one.

Being on the SVR will cost me £30 a month more than I am paying now which is £251 a month, from November I pay £280.

Do you think I have been given the right advice and should I just stay on the SVR until there are any changes? I think it will be too much hassel to move to another lender and want to avoid it if I can.

Hope you can understand what I've written

Thanks very much

temba

Let's assume that all the rates you are comparing have a tie in period of 5 years:

Find the best rate(s)
Work out what the amount you will be paying for the period you are tied in for
Add on the upfront and any exit fees
Then work out what you will still owe after five years


Then:
Find the best mortgage with no fees
Work out what you will be paying in the tie-in period
Then work out what you will still owe after five years

Then:
Work out what you will pay if you stay on the SVR
Work out what you will still owe after 5 years

Then you can see which one comes out best. I owe more than you, but still not a massive mortgage. My mortgage advisor advised a Northern Rock one fixed for 5 yrs at 5.99 with no fees and the ability to overpay as much as I like. This was a month ago though, so I am sitting tight to see what is coming up as I'm not in a massive rush. She did look at other mortgages with "better rates", but after you'd added the fees, I would owe more after five years than I would if I'd taken the higher rate.

As for when you are able to change until, I don't see why you can't change at any time, before or after end of October, you just might end up paying the SVR for a month or two whilst you decide, but in the current climate that may not be a bad thing. i might do just that.

temba

Sorry that came out looking way more complicated than I meant it to do.... what I meant was that as you are only paying an extra £30 a month for the SVR, then it might well work out better for you to just stay on that, .but if you want to be sure then you really need to do the maths and find out how much you will owe at the end of the tie in periods.

Sorry trying to help not complicate things:o

ixwood

Bearing in the mind, that the SVR can be whatever the bank wants to make it at any time.

When people best option is staying on the SVR, the cynic in me thinks it's not going to stay that way. With the banks obviously desperate for cash and the way things are, SVR's could well be ripe for some margin improvement IMHO.

completlyconfused

Thanks Temba, if I worked it out I would have to do it over three years because of my endowment.

In three years my mortgage should not be as much because I won't have to pay for my endowment, it is on track at the moment but then that could change. Looking at my statement though I can't see how my endowment will be paid for in three years when my total bonuses and benefits as of 31/12/2007 are only £10,828.50 when my target amount is £17,330.

I don't really want a fixed rate just incase mortgages start going down. So I think I will stay on the SVR for now but keep an eye on the base rate. I'm not sure whether my first payment of £280 is with or without the 1/2 % took off I will have to wait for my first statement.

Many thanksagain, I do feel better after your reply.

temba

As things stand you are only paying an extra £30 on the SVR, that's really not that much, it gives you total flexibilty without exit fees and you can always change your mind in the future if you need to.

Good luck