I'd love to hear your views (remortgaging)

jobbingmusician

I'd really appreciate some views on my situation, below.

I have a flexible mortgage and am currently repaying at 6.1% :rolleyes: I will need to draw down some more money to have the house re-pointed and some damp sorted out in the next year or so (assuming I still have a job)

It does seem sensible to shop around and try to get a better deal. BUT my job is horribly insecure atm. Does the panel (you lot!) think I would be better off

a) not doing anything, and continuing to overpay (I currently pay about double the min payment each month, and my outstanding mortgage is about 1/5 the value of the house). This is on the basis that if I lost my job and couldn't get another, the mortgage company would be happy to accept a payment holiday until IS kicked in.

b) remortgage with same company. The remortgage wouldn't be a flexible one, but (again, if I had a job) a loan would cost 5.6% so would be cheaper than current mortgage. I am being offered a discount tracker at a 2 or 3 yr fixed intro rate of 4.84%. One disadvantage - I couldn't overpay by more than 10% each yr without penalty.

3. Remortgage with different company. Oh, if only i had a secure job! I've found a lovely 5yr mortgage with A & L for less than I am paying per month atm - ie I could carry on overpaying and would be mortgage free :j in 5 years........

4. I am looking at fsa.gov.uk to compare mortgages, but my list only shows as far as companies beginning with 'B' - how do I see the rest of the table? (Sorry to be so stupid!)

5. Is there anywhere that shows a table which illustrates what happens to my current mortgage if I carry on paying £1200 a month and when I'll be mortgage free? And any way I can do the maths so I see what I am gaining or losing with various arrangement fees?

Sorry for all the questions. I have sent off for Martin's book, by the way, but time seems to be running out!

TIA

Joe_Bloggs

If job security is an issue then I think you should research house repointing yourself. Consider repointing a tedious hobby. I have known a neighbour who got invited to do the entire street once the work was seen. You could restrict you efforts to the sides as the fronts often require a bit of flair/precision. You may want to investigate the likely source of damp in your house. Is this a failing damp course or something else ?
Also build up a savings buffer before overpaying your mortgage. Pay your regular payments from these savings to tide you over periods of under-employment.
It is a tricky decision to chase a new deal when you are so close to finishing it and have employment difficulties. Many brokers will not be interested enough. I am sure you have many strings to your bow and will muddle through with just my best wishes.
J_B.

homer_j_3

If your job is insecure, then dependent on the specifics of what you actually mean by that, now could actually be a better time to look at remortgage on the basis that if you are still in employment and can get a better/cheaper deal.

You will need to speak to a professional who has the ability to look at your circumstances and give advice most suitable to help you. If the best thing for you is to stay where you are then the broker should tell you this.

You really need to understand how you would cope if the worst case scenario and try and plan for that the best you can.

jobbingmusician

Thank you so much for the replies, both useful fodder. I like the 'repointing is a tedious hobby' thought and am still considering it. There are some drawbacks - it's the front of the (terrace) house which needs doing, and husband (who was extremely skilled, but can't undertake repointing up a ladder as he has a neuro problem which means he should not be able to walk) says the wall is so old (1851) that he thinks it should be left to a pro. I'm still working on him to let me do it, though - the money saving aspect is a great attraction.

Yes, homer, I think you're right that it may be a good time to remortgage - as JB says, I am sure we will muddle through. I may speak to someone (father!) to ask if he would give us a loan to ensure we didn't lose the house, if I was out of work for a while. I am feeling more positive today than yesterday - there are always jobs out there for a skilled and experienced person!

AndrewSmith

I assume by your name that you are a musician?

I know of a broker (not me) who specialises in dealing with musicians as he used to be one himself. Let me know and I will give you his details.

Andy

MortgageMamma

yes he will swap you the details for a new guitar. i believe he needs one !!!!

jobbingmusician

LoL, no, thankfully I don't any longer have to make a living that way - just a jobbing musician who does gigs (classical) on the side. A much nicer way to survive! :rotfl: