renew mortgage deal - our fisrt time, any tips/advice

QfanatiQ

I am sure the situation is very different from what it was not that long ago.

We bought our place 18 months back with a 90% mortgage at a fixed rate with Halifax.

It is now that magic 6 months before the mortgage ends (at its current rate), so i know i need to look to arrange and renew.

This is our fist time for renewing the mortgage and due to the "current climate" i was wondering if anyone is abel to offer an advice and or tips on where, what, how we might go about getting a suitable and fair deal (if at all possible)

We have very little money to put towards any further set up fees (if they are going to go in to the thousands) due to the fact i was made redundant, but i am now back in work, a good third less salary then i was on before, but still able to make current mortgage commitments. I can (if needed) also continue to make payments if we have to default to the 7.25 standard variable rate (if that has not changed).

Currently our fixed rate stops at the end of August the fixed rate is 5%

As i mentioned, or mortgage is with Halifax. We have long standing account relationships with Abbey, HSBC and Lloyds we have had a good realtionship with these banks and not been in trouble during the 10 years + we have had the accounts.

I was going to arrange meeting with all of these in the first instance before going back to Halifax itself to see what they can do.

Taking into consideration the rather obivious issues with the economy and the fact this is the first time we are renewing, i feel somwhat lost in what appears to be considerable conflicting information on the net and forums with what deals people are getting.

I woudl like ot be (if at all possible) as well up on what i need to ask and the situation so i dont get hoodwinked into a silly deal (as i feel we were when we took our mortgage (i did not know of this place back then).

Thank you all, for any help, advice or pointers you are able to give.

Just out of interest, what is the lowest amount of money (percentage is possible) that you would need to have to make the most of an offset mortgage (if indeed it is even possible to get these deals still) Whiel we do not have the money ourselves, parents are offering to have thier money sit in our account pending on money needed.

Our property was (not had valued since) 300k when we bought so a 90% mortgage was 270 and we covered all fees for moving, stamp duty, solcitiers, bank set up charges so nothign was added to that figure.

Thanks, Q

beecher

If you had a 90% mortgage 18 months ago and haven't overpaid, chances are you're LTV is now too high to remortgage elsewhere. Your 300k property is likely to be worth around, or even less than 270k now. You could phone up the Halifax to ask them what level they are presently valuing your house at as they used software to do so.

Because of this your best bet is likely to be the Halifax as you won't be able to remortgage elsewhere. Their SVR is now 4% rather than the 7.25% quoted in your documentation - it may be lower or higher in 6 months time as no one really knows.

Halifax won't be able to help you until 3 months before your deal runs out so it is a bit early for them. Keep an eye on
http://www.halifax.co.uk/mortgages/newdeal.asp
to see the deals available for existing customers. There have been reports on here of people getting deals with them even if they are in negative equity, so hopefully it'll be the same for yourself.

stuarthouse

Hi

90% mortgage http://www.money.co.uk/mortgages/90-mortgages.htm
95% mortgage http://www.money.co.uk/mortgages/95-mortgages.htm

(Nothern Bank .. bets rates ... are Irish & only deal with 500K+ propeties in england)

Also http://www.fsa.gov.uk/tables/

dunstonh

Not much chance of the LTV being 90 or 95% now though. Probably closer to 105-110%

dimbo61

If you do end up on the Halifax SVR of 4% you will be paying less each month for your mortgage than you are right now.
Overpay any savings as this will over time help increase your LTV !
If your parents can put some money into an offset mortgage ( seperate account ) Yorkshire Building society do this it will save you alot of interest.
This depends on who will give you an offset mortgage with a high LTV
GOOD LUCK

QfanatiQ

Thank you very much everyone. I appreciate the help and pointers in starting me of and the advice regarding values etc.

A good starting block. Much appreciated.

Q

kungfu=shampoo

I'm in a similar position to this, just looking at renewing with Halifax as that looks to be the only viable option. My LTV is approx 82%.

I've got a deal that I could take for a 3 year fixed rate deal at 4.69%. The link posted by beecher above states that the deal must be completed by end of June 2009. Now, my question is this:

The last payment of my current fixed rate deal is due end of April, so I will go on to the SVR of 4% with effect from May. It would obviously be in my best interest to leave completing the deal until end of June to benefit from the lower rate for 2 months, however I was thinking if Halifax are offering the same deal in June, could I then just re-apply and get the latest completion date extended to August for example??

Has anybody tried this approach? Any advice much appreciated.

beecher

kungfu, although the Halifax say the deal must be completed by the end of June, there's very little likelihood of it still being available then as they've been changing deals regularly recently.

Are you wanting to stay on the SVR for a while to save some money? Be aware that your LTV might quickly be above 85% which takes you into the next tier for Halifax. I'm not sure if you can say you'll stay on the SVR for a few months and then go onto a deal - need to ask Halifax that one. I find them quite helpful though so you could phone up and see.

kungfu=shampoo

Thanks for the reply beecher.

Yes, the main reason for going on to SVR for a few months is to shave a few pounds off my repayments for a few months and give us a bit of breathing space. My idea was to get a deal in principle arranged, but not actually complete until the latest time possible. As the deal will be agreed, I presumed they won't be able to pull the deal even though they change deals that they are offering to customers. Then, when the time comes, if the same deal still exists, but does not have to be completed until a couple of months later repeat the process thereby lenghtening my time on SVR.

I will give them a call, act a bit dumb and see what they say!