Advice please regarding our mortgage

narabanekeater

Sorry as im sure this is going to be a long one. Im explaining our situation on here in a hope to get some advice from other money savers. Ive starting to do this regading most parts of an income in other to cut in down so I can throw as much money as possible towards clearing my credit cards quicker so here we go..
Hubby and I took out a fixed rate morgage 3 years ago with Gmac. The fixed rate ended last year. We are paying a rate of 6.58% on £43000. I am told this is way over the top.
We are looking at moving and increasing our mortgage next year in the summer.
I earn 10k p/t and my hustband 16k f/t. We have just one daughter
Our debt situation is as follows hustband nothing owed and myself am just about to clear another cc but will owe £2500 on one c/c that were throwing everything at paying. This is at a rate of 6.9%
Were having no problems paying off our debts. If id have posted this post last year we would have been all over the place but thanks to this site were just down to the one c/c
We do have an authorised overdraft at the bank that we use a bit most months but have never been overdrawn.
My hustband has one default on his crdit repost this was 2 years ago for around £200. I am going to write to the company to see if they will remove this as they only gave it him because of one late payment charge putting him over his credit limit.
So thats are situation. I guess im trying to get a lower rate on my mortgae with the intnention of throwing the saving at the cc debt. How expensive is a remortgage? Is it possible to do one for just a year and then go as I mentioned before get the larger one next year so we can move?
What sort of companies should we look at going to. It was a sub prime lender before hence the gmac mortgage.
Should we just accept that were being ripped off at the moment and just get the larger remortgage next year? We have no early redemption charges with Gmac.
Thanks for any advice that you may be able to offer

davilown

narabanekeater wrote:

Sorry as im sure this is going to be a long one. Im explaining our situation on here in a hope to get some advice from other money savers. Ive starting to do this regading most parts of an income in other to cut in down so I can throw as much money as possible towards clearing my credit cards quicker so here we go..
Hubby and I took out a fixed rate morgage 3 years ago with Gmac. The fixed rate ended last year. We are paying a rate of 6.58% on £43000. I am told this is way over the top.
We are looking at moving and increasing our mortgage next year in the summer.
I earn 10k p/t and my hustband 16k f/t. We have just one daughter
Our debt situation is as follows hustband nothing owed and myself am just about to clear another cc but will owe £2500 on one c/c that were throwing everything at paying. This is at a rate of 6.9%
Were having no problems paying off our debts. If id have posted this post last year we would have been all over the place but thanks to this site were just down to the one c/c
We do have an authorised overdraft at the bank that we use a bit most months but have never been overdrawn.
My hustband has one default on his crdit repost this was 2 years ago for around £200. I am going to write to the company to see if they will remove this as they only gave it him because of one late payment charge putting him over his credit limit.
So thats are situation. I guess im trying to get a lower rate on my mortgae with the intnention of throwing the saving at the cc debt. How expensive is a remortgage? Is it possible to do one for just a year and then go as I mentioned before get the larger one next year so we can move?
What sort of companies should we look at going to. It was a sub prime lender before hence the gmac mortgage.
Should we just accept that were being ripped off at the moment and just get the larger remortgage next year? We have no early redemption charges with Gmac.
Thanks for any advice that you may be able to offer

Only an amatuer response but check out the mortgage page from martin. not sure how much you should be potentially able to save but a remortagae of that amount over 25 years would be £243 pm on a 4.6% fixed for three years with no overhangs.

Again wait for the people that know to respond as they have the knowledge (and the power!).

how much are you paying at the mo? and how long have you got left?
good luck
:beer: monster

Doozergirl

You must remortgage as soon as you can. You are paying far too high a rate and you will be able to find a mortgage that you can move to your new house.

If you go to see an Independent, Whole of Market advisor they can search every mortgage out there and find you the best one to suit your personal circumstances and the fact that you plan to move next year.

You can find one by putting in your postcode at http://www.unbiased.co.uk/personal-finance/mortgages or there's a couple here too that will be able to help you.

We've got an IFA and there's no way I'd trawl the high street when we've got everything we need in one place

narabanekeater

Sorry I must have been unclear. We have £43000 remaining over 22 years

Gem_

Just to give you one product as an example - Natwest offer an discount mortgage at 5.35% which has a £245 arrangement fee and then you can either move the mortgage to your next house or pay it off in full with an admin fee of £250. At a very very rough guess that is going to save you about £50 per month. If you are planning to move in the next 12 months and dont want to take the product with you to the next property then one with no penalties sounds like a good move.

The important thing I found (I also have a similar sized mortgage and have just finished my discount deal) is that by the time you pay the admin fee to end the old deal, the arrangement fee for the new deal, and the admin fee for ending the new deal any saving you make could be tiny!

I am going to sell in 12 months and worked out that if I sell in 10 months I loose money, 12 I break even and its only if I keep the house for longer that the fees start to even out the savings. Obviously this depends hugely on rates and what the admin fees are with your current deal but it gives you an idea, I hope.

HTH

G

PS you might get more help on the mortgage free board.

stanmoresaver

I've posted a link to this thread on the Mortgage board as you will probably get more joy!

HTH

SS

HelpWhereIcan

Based on what you have posted, there is no reason why you should be restricted to 'sub prime' lenders with only one default from a couple of years ago, particulalry if it has now been repaid.

However, not every 'high street' or 'prime' lender will be able to offer you a mortgage because of the default, but there will be more than enough lenders (including sub prime) willing to offer you a better deal.

As has been said go and see a whole of market adviser and be suspicious of anyone who automatically tries to put you with a sub prime lender.

Hope this helps.

simonts

GMAC themselves do a better rate than that..between myself and my girlfriend we both have a default each and have been given 5.4 or something to that effect