2nd Legal Fee

Grz.26

Hello All.

I wonder if any of you could possible shed some light on this situation. We are set to remortgage onto our preferred offset mortgage with First Direct but they are saying they cannot proceed as we have 10k 0% fixed upon our house which was set up as a introductory offer and not onto our mortgage, (all well and good); but it appears that we cannot change lenders and we are stuck with original lender where there rates are not favorably.

Is this the same for all mortgage lenders? If so; then we are screwed to stay with the same lender who has our preverbal nuts in a vice.

I do have 20k in savings but reluctant to put it into property at this time, would prefer it offset, or would paying off 1/4 of mortgage be better at this time? We have a mortgage of 81k.

Any advice?

Yours sincerely

Mr Grz.26

SwitchyChick

FirstDirect will not allow ANY second charges. You will have to get this removed before FD will proceed with the mortgage. I know, we had something similar and until the Land Directory was shown to be clear of this 2nd charge FD would not proceed.
It is not the same for all mortgage lenders.

dimbo61

You have £20k in savings and a £10k loan which is a second charge on your home.
Time to get out the cheque book and pay off this loan if you want to change lenders and get a better deal.
You dont need to use all your savings just enough to clear the loan and if you want use the rest to offset the new mortgage from FD
GOOD LUCK

Grz.26

Hi, thanks for your comments. I have just phoned RBS who have mortgage with at the moment, and i can carry on with there SVR which has gone down to 5.19. no fees what so ever. So was thinking ill stay with them...?

dimbo61

Overpay anything you are saving either into cash ISA,s paying over 5.19% or overpay the mortgage and see how the market goes in the next 6/12 months
GOOD LUCK