re-mortgage

Maybeanotherday

This is a question that may make me sound a little sim ple Im afraid....

Our mortgage was fixed with halifax a year ago on a three year fix (I think lol)...

We are paying £800 per month on a 114k mortgage which we are managing at the minute when this contract comes up can someone please advise me the following:

1: do we have to pay another deposit to get a new mortgage?
2: Are there any fees connected to re-mortgaging? if so roughly how much should we be thinking of saving?
3: Are mortgage brookers really worth the time? We had one to get this one which was suppose to be a tracker...when the paperwork came through it was too late
4: Is there anything else I need to know? We will have two children by then does it change the way lenders look at you?
5:Will halifax offer us another deal without us having to look elsewhere?

Thanks in advance

latecomer

1. What deposit are you talking about? The one you put down on your house or did you pay to reserve your mortgage?
2. There are normally arrangement fees and possibly valuation fees too. The amount varies but these days up to £1000 for arrangement and £500 for valuation is no uncommon. Quite often the valuation fee is refunded if the application is successful. All this is entirely down to the lender though so its impossible to say what you will need.
3. I used one the first time but have done everything myself for the last 2 mortgages. I benefitted the first time as I knew nothing about mortgages but I dont believe I would have for the next two. Some lenders apparently do have special products and rates that are only available via a broker.
4. Not directly unless your income has dropped due to one/both parent working part-time etc
5. They probably will but who knows what will happen in the next couple of years. Even if they didn't, you should go onto their standard variable rate for the remaining term of the mortgage. Better deals tend to be given to those who have lower loan to values (LTV) i.e. they are borrowing less as a percentage of the property value. So if you are at a high LTV then overpaying to bring it down will help when it comes to remortgaging.

Hope that makes some sense

Trying_to_be_good

skellett wrote: »

This is a question that may make me sound a little sim ple Im afraid....

Our mortgage was fixed with halifax a year ago on a three year fix (I think lol)...

We are paying £800 per month on a 114k mortgage which we are managing at the minute when this contract comes up can someone please advise me the following: You will revert to an ongoing rate (might be standard variable rate, or a tracker), your mortgage won't just stop - check your original paperwork.

1: do we have to pay another deposit to get a new mortgage? No, but you need to meet the lending criteria, i.e. have a Loan to Value (LTV) appropriate for the new product - you might need to add more savings to bring the LTV down.
2: Are there any fees connected to re-mortgaging? if so roughly how much should we be thinking of saving? All are variable, some might be paid by the lender - Arrangement fee (up to £1,000), legal fees (£250), valuation fee (£400)
3: Are mortgage brookers really worth the time? We had one to get this one which was suppose to be a tracker...when the paperwork came through it was too late It wasn't too late - if it wasn't what you agreed to, you could have compained to the broker. They can check the whole market, so are often worth the time and possibly expense.
4: Is there anything else I need to know? We will have two children by then does it change the way lenders look at you? They will be interested in your income and outgoings - salary and other debts will be very important.
5:Will halifax offer us another deal without us having to look elsewhere? All depends on the above - LTV particularly. If that's less than 90%, you're more likely to be successfully in obtaining a new product.

Thanks in advance

I've tried to answer your questions!

Maybeanotherday

Thanks to both of you The house was bought at £120k we got a mortgage for £114k not sure how much it'll be down to when we reapply not sure if that answers questions?

Maybeanotherday

p.s it was valued at £125k but obviously the market is changing

Trying_to_be_good

I think your LTV will be too high for another deal, so you're likely to revert to SVR - if you can afford that, you don't need to worry in the short term, but try to pay as much off the capital of the mortgage as you can, whilst rates are low. This will put you in the best position to be able to get a new deal when rates start to increase. Aim for an LTV of 90% max, so if you're property is worth £100k now, you need to get the mortgage down to £90k.

Maybeanotherday

Trying_to_be_good wrote: »

I think your LTV will be too high for another deal, so you're likely to revert to SVR - if you can afford that, you don't need to worry in the short term, but try to pay as much off the capital of the mortgage as you can, whilst rates are low. This will put you in the best position to be able to get a new deal when rates start to increase. Aim for an LTV of 90% max, so if you're property is worth £100k now, you need to get the mortgage down to £90k.

Only problem is we are in a fixed deal as it is charging us £800 per month..not sure we could top much more of that...
It's a shame that they don't send you a yearly breakdown of what you owe...a little like an ISA where you can see the profits or loses if thats makes sense?

Sportbilly_2

The Halifax send us a statement every year. You can also register your mortgage account on line and view its current outstanding balance.