Re-mortgage

Gentle_Giant_2

Evening everyone

After a very busy day at work, tea, housework blah blah blah etc.....

You know how it is....... I have contacted my existing mortgage lender as I am on a fixed rate of 5.4%.

To be told the best they can offer me, as an existng client is 5.00%.

Base rate is 2% Correct!!!!!

I contacted a new mortgage lender and after 40 mins on the telephone to a very understanding person. The value of my current property needs to be £180K. Purchased two years ago £148K I do not think so.

I am confused..... I have paid my current mortgage on time for the last two years. I am aware that there is 3 years remaining in my current deal. Base is on a 55year low - great - if only it were that simple.

The saving - if I could locate a new lender is £299 per month.

The mortgage release fee is £3,883.40 - I am prepared to pay this. Then once switched try to claim some back. Skills learned from this site.

Why will my current mortgage provider not give me 2% lending - I would not have to find Sols etc.... have a valuation etc..... All extra cost.

I thought these financial bodies are here to help and support.

Any guidance would be appreciated - Thank you in advance.:mad:

feisty1

I don't know where u've been for the last yr but yr somewhat misinformed!
Quote: Then once switched try to claim some back!!!! mmm I don't think so, on what grounds? A lender publishes an arrangement fee of say 1.5k, you agree and take out that mortgage, then afterwards you want to claim fees back!!??
Quote: I am confused.....
Yes I think you are

Gentle_Giant_2

Hi feisty1

Thank you for responding.

My main issue here is not the mortgage release fee of £3,883.40. I am prepared to add this to the borrowing or pay from existing savings.

My real issue is my current mortgage lender not offering me 2% base - when I have an existing payment history.

Against a new lender - who will offer 2% base for the full lend as long as my property value comes in at £180K. Add to this Sols fees and a full valuation etc.....

Any assistance or advice would be most welcome.

izzzzythedog

think about what your asking , base is 2% and you want to borrow at that rate , how do they make a profit ?

Gentle_Giant_2

Hi Izzzzthedog

Thank you for responding.

New lender will offer 2% base and no fee to switch, after 40 mins on telephone tonight.

But have to use Sols and have a full valuation which needs to be in at £180K to achieve lending percentage.

Property purchased 2006 for £148K - made some alterations however I can not see the value reaching the dizzy height of £180K

Why will my current lender not offer a better rate than 5% with all the credit history?

Regards

Caz3121

The best rates are for a low loan to value - you don't say how much you are looking for but think the best rates are around the 60% LTV (eg mortgage of £108k for house value £180k) the higher the LTV the higher the %...and in some cases there will be no offer at all

manikm

Gentle_Giant_2 wrote: »

Hi Izzzzthedog

Thank you for responding.

New lender will offer 2% base and no fee to switch, after 40 mins on telephone tonight.

But have to use Sols and have a full valuation which needs to be in at £180K to achieve lending percentage.

Property purchased 2006 for £148K - made some alterations however I can not see the value reaching the dizzy height of £180K

Why will my current lender not offer a better rate than 5% with all the credit history?

Regards

thats bloody good going - after a phone call - they're prepared to lend you base rate>!???

izzzzythedog

wow , get it in writing and get signed up asap , most are offering at about the 4-5% still based on whats perceved as a real inflation of 4% so to get 2 % is a serious bonus

once your signed could i ask what company your with , its not the one im with thats for sure lol

dwsjarcmcd

Gentle_Giant_2 wrote: »

Why will my current lender not offer a better rate than 5% with all the credit history?

There could be lots of reasons why

1. You don't say what the 5% is i.e. fixed rate and for how long. If it is a fixed rate, then these not priced off base rates.
2. As has been said, they need to make a profit so no-one is going to lend to you at 2%, with no fees!
3. They may not want to lend much just now, given all the liquidity issues around.
4. They may make more profit if you redeem your mortgage and pay the redemption fee and because of 3 above they may welcome this.
5. They don't need to, for whatever reason.

Who is going to lend at 2% with no fees?

_Andy_

Gentle_Giant_2 wrote: »

New lender will offer 2% base and no fee to switch,

I'm pretty sure you mean a percentage over base rate.

Could you state which lender you believe is offering you 2%?

beecher

I'd agree with _Andy_ - the offer must be for Base Rate plus 2%. It probably didn't even enter the call centre worker's head to make sure the OP understood this didn't mean the rate was 2%.

My advice would be to go to an adviser and not to arrange anything yourself without fully understanding what you're doing. 5.4% isn't a bad rate - I think the advice will probably be to stay on it.