Oakwood Homeloans - Too good To be True?

Optikal

Hi guys,

I currently am 2 years into a Right To Buy mortgage with Oakwood Homeloans.

When I took out the mortgage it was for £56,500 @ 7.59% Fixed for 3 years (To expire Jan 2010)

The other day I recieved a letter from them explaining that if I were to refinance my mortgage with another lender before 8th December 2008 they would:

Waive the Early Redemption fee (£3,313.53)
Waive the Mortgage Exit Fee (£120)
AND
Waive 15% of the Outstanding Balance (£8,283.82)

It would save me £11,717.35.

Leaving my mortage balance at £46,941.35

Now, it seems like a really good deal. however, when I took out the mortgage in 07, it was such a high rate as I had such a poor credit history. Now that is slightly better and we earn more as a couple (13k in 2007, 20k today) but in this climate I'm not sure who to turn to for the best advice or where to even begin looking for a remortgage.

Any and all advice would be great.

Optikal

Hi guys,

I currently am 2 years into a Right To Buy mortgage with Oakwood Homeloans.

When I took out the mortgage it was for £56,500 @ 7.59% Fixed for 3 years (To expire Jan 2010)

The other day I recieved a letter from them explaining that if I were to refinance my mortgage with another lender before 8th December 2008 they would:

Waive the Early Redemption fee (£3,313.53)
Waive the Mortgage Exit Fee (£120)
AND
Waive 15% of the Outstanding Balance (£8,283.82)

It would save me £11,717.35.

Leaving my mortage balance at £46,941.35

Now, it seems like a really good deal. however, when I took out the mortgage in 07, it was such a high rate as I had such a poor credit history. Now that is slightly better and we earn more as a couple (13k in 2007, 20k today) but in this climate I'm not sure who to turn to for the best advice or where to even begin looking for a remortgage.

Any and all advice would be greatly appreciated.

poppysarah

Who do you normally bank with? Have you managed to start saving too? What are they offering?

You should probably take some proper independent advice about a new mortgage - the offer does sound like they want shut of you though.
And the 15% sounds good!

Optikal

I odn't know why they want shut though We've always paid in full and on time with no problems :P

I don't want to hand out a few hundred quid for a broker to tell me there's nothing on the market... I've been informed about a company called London & Country so I'll give those guys a ring.

Alan_M_2

Birmingham and Midshires will probably be able to help you. They deal with mortgages for customers who don't have glowing histories....

http://www.askbm.co.uk/mortgages/intro.asp

GDB2222

Could I suggest that, before going any further, you find out how much your home is worth. The best way is to look at actual sale prices on www.houseprices.co.uk

Any new lender is going to want to see a pretty good margin between the house value and the mortgage. Just because 15% would be written off does not mean that.

Optikal

Thanks for tha advice guys. I've just had a word with L&C and they're confident that because my LTV is under 75% that I should be able to get a pretty good deal all being well.

Philippa36

We've had several clients who've been offered the same deal. We've managed to organise remortgages on reasonable deals for them. Its a great offer, I just wish we'd mortgaged through them!

Don't pay for a broker to do a search on your behalf - theres plenty out there still that don't charge fees.

Rick62

Its a fantastic deal, offerring to waive over £8000 if you take your mortgage away. I'm sure it is genuine, some lenders, started by Edeus, have been doing this.

You need to find a good local broker, you could try a site like www.impartial.co.uk or if you used a good broker before? You should act quickly though, to make sure you meet the 8th december.

Good luck

Conrad

Its true, I'm in the process of remortgaging someone away to Bristol and West following the loan reduction offered by Oakwood.

Rick mentions using a good broker - I agree. Good brokers are not those that will pile you into another subprime lender though. They will try C & G, Accord, Bm Solutions and other prime lenders. If they try and get you into First National (GE) as a first attempt - they are not a good broker.