when to remortgage?

lukemed1

hi everyone,

just need some advice, i currently have a mortgage with the bank of scotland , i think i could get a better deal elsewhere however, i have a satisfied ccj on my credit file from 5 years ago which will still be on my file for another year, should i wait for it to clear from my credit file before applying to remortgage or just go ahead anyway?? any help would be great!

best regards

Luke

MortgageGenie

One CCJ which was satisfied 5 years ago is unlikely to present a problem. Don't try to hide the fact, be upfront and you should be fine.

Joe_Bloggs

Your existing lender is always a good place to start. If they are not too keen then ask for a redemption statement. This will tell you how much it will cost to move your mortgage. This may trigger some concern with your existing lender. They may think you are about to leave. It is worth a try.
Moving mortgages can be expensive. The benefits of the move often take 6 months or more to overtake the fees that had to be paid up front. In leaving HBOS to go to Nationwide I had to make a mortgage payment to each of the lenders in the same month plus redemption charges and mortgage fees. This can put a financial strain for those not prepaired. HBOS (I.F.) refunded the mortgage payment within days.
You don't mention the rate of interest or the amount owed. The value of the property. How long have you had the mortgage ? Are you on a standard variable rate (SVR) ?
J_B.

lukemed1

hi there

mortgage £57,500

rate 5.6%

had mortgage for 3 years

£56867.65 left to pay

value of property £70,000

best regards

Luke

Joe_Bloggs

That looks like a 50 year term mortgage! The rate of capital repayment is very low. Only £633 in 3 years. That's about £20 capital repayment for £265 per month in interest. What amount can you afford to pay per month as the term appears too long to be practical with other lenders. The 5.7% is much less that typical SVR of the majority of lenders. I got a 0.5% rate reduction on SVR for the term, with my suggestion, before I left I.F.
Regards J_B.

herbiesjp

Have a word with BoS first to see what they can offer you, but then look around to see what else is on the market and which is offereing you the best deal in terms of rate and fees.

The CCJ should not be a problem with a lot of lenders.

scbfung

have a look around the market and then see if it is worthy to change .Most of the time people concentrate on the rate and what is the monthly payment and ignore the fact that they paid more over the period of time.

Therefore find out the total amount you will be paying over the term will be very useful as well.