new mortgage deal advice

ironhide

Hello everyone

My first post here but probably one of many!

Our current mortgage deal is due to expire in a couple of months (currently 4.49% fixed) we have a meeting soon with our current provider and there are 3/5yr deals of around the same % on offer.

We got our house 3yrs ago for 190k full repayment. We have approx 138k left. We earn between OH and I, 65k.

I know the house is not 'worth' what we paid for it but we don't care as we love it and it's a home not a house! but what my question is, would it be worthwhile looking for another provider or, assuming we can get a similar deal to what we are on do we stay with it. We both prefer stability and want kids soon so fixing our payments is appealing rather than eaking out every last penny rather at the risk of rocketing rates in 1,2,3yrs who knows.

Are we likely to have enough equity (if any!) to make us attractive to other lenders or is it really as bad as everyone makes out.

Any advice or comments gratefully received, might even see me on the mfw board soon.

Cheers

Robert_Sterling_3

Could you make a precis of the above post?
Please cut to the chase?
What do you want to know?

bigw81

Here's a few tips - apologies for the rudeness of some other posters
a) some lenders offer 'retention' rates which can be very attractive - although they are advertised as only available up to 95% loan to value, they often will even give the retention rates to people in negative equity - sometimes even if your mortgage is up to 120% of what they reckon your home is worth. So don't worry, your mortgage is still in demand!
b) retention rates are usually given with no need for a credit check OR check of your income - so even if one of you was no longer working eg: on maternity leave - or if you had a few 'black marks' on your credit file, it wouldn't matter - they'll still allow you to move onto one of their retention rates. Maybe you're thinking 'so what' - I'm earning plenty and my credit file is sweet - but will it be the next time your rate ends? and the next time? and the next time? Having kids stretches finances and often means resorting to one wage-earner - do you really want to have to time your next remortgage to co-incide with your partner not being off pregnant!? Take time to think it through, and you'll agree the right choice is to go with a lender who offers retention rates, no questions asked - its like future-proofing your mortgage.
c) sometimes they'll let you come out of your existing deal a month or so early with no 'early repayment fees' - check whether your lender will permit this if you're keen on a particular rate available just now
d) house values are expected to continue to slide this year - so you've nothing to gain by hanging around - if anything it'll become more difficult to either remortgage or get a retention rate as months go on.
e) I'd agree re fixing - my kids are grown up now but when they were small we always went for a fixed rate; even if it meant paying a little 'over the odds' from time to time when rates were fluctuating, I valued the certainty of knowing exactly what my payment was going to be month in month out, and being able to budget for it.

Hope that helps x

ironhide

Thanks bigw81, but no need to apologise for others, I've a thicker skin than that, especially when the reply to my post was just an excuse to get someone's post count even higher than it is. What I never understand about forums etc is that people have a 'go' when they voluntarily come on these boards. I mean its not like anyone holds a gun to their head to read the posts.

Anyway, thanks for your comments and points. I've noticed that there is another thread very similar on here about Britannia (my lender) and I had a call with them today so now it's just upto me which deal I go for. There is one for 4.24% with a pretty hefty 999fee but it would save money over the 5yr fix so may look at that tomorrow.

Cheers.

dimbo61

If you can get the 4.24% 5 year fix from your existing lender ( britannia ) then thats not a bad deal and it gives you security for 5 years while the kids are young !! and not at school !! and the OH is off work !!
Post office offering 4.15% 5 year fix fee £799 75% LTV
HSBC/ abbey 3.99% 5 year fix fee £999 LTV 60%
A&L 3.99% 5 year fix fee FREE ! LTV 65%
So paying £999 fee over 5 years is only £200 a year or £4 a week !
GOOD LUCK