Mortgage Advice - Credit Crunch Edition?

airchie

Hi moneysavers,

I've not been on in a while but I recently got a letter through telling me my mortgage's fixed rate deal was coming to an end on 1st August.

I've heard that its a great time to get new mortgages on excellent rates etc but I thought I'd check in here first since its served me well in the past.

I had a look at the mortgage guide but there's a note in there stating its due a complete rewrite due to the whole credit crunch etc.

So what do you think is the best way to proceed?
Can I really get fixed-rate mortgages at really low rates like I've been told or is it not really a mortgage-seeker's heaven out there?

Thanks in advance for any advice.

Mrs_Bumble

That would really depend on your personal circumstances.

Who is the existing lender?
What is your current loan to value (LTV) current outstanding mortgage balance divided by estimated value of property, sites like https://www.zoopla.co.uk can help with this.
Repayment or Interest only
any credit history issues?
Income
How long are you looking to fix for?

airchie

Thanks for the quick response, I'll try to answer all the questions.

Existing lender: The Chelsea
LTV: 117500/145000=0.81
Payment type: Repayment (currently interest only)
No credit problems
Income: min £32500 PA
Looking to fix for as long as is sensible, not sure really.

Mrs_Bumble

You are not on a temporary contract or self employed for less than 3 years and income was variable previously? If not then looks like the world is your oyster then!

Can't see any real issues there for any lender unless the valuation is a bit off and the LTV goes up a bit or if you have very large unsecured credit committments that could knock back affordability but looks like you can certainly shop around

airchie

Was at university last year as a mature student but now working full-time for an IT outsourcing company (voted 50th in the Times' Top 100 SMEs ).
My basic salary is £32500 but if I go offshore I get a bonus of £100 per day and if I'm working away from home mon-fri I get a 40% uplift in salary.
So I sometimes get more than my basic salary which if I was slightly more disciplined, I'd have used to pay off more of the capital on my mortgage.

The only other debts I have is a car loan that I'm paying £500 p/m on right now but someone smashed into my car so I'm considering changing it to something more affordable so I can throw more money at my mortgage.

So do you think its worth looking into long term fixed rates now?
Or shorter terms or trackers etc?
I'm quite keen to try to get as much as poss paid off of my mortgage while I can.

Mrs_Bumble

The £500 per month car loan will take off £6000 per annum from affordability so Basic salary less the £6K = £26,500, whether a lender will take all of your bonus or uplift in salary will be as per their criteria, which is hard to generalise on.

If you are not sure which rates would be best to go for why not speak to an independent mortgage broker and they can go through your personal situation and make recommendations based on that.

Conrad

Your case sounds complex so you should probably take advice.Rates aren't great anyhow over 75% - what will your lenders svr be?

airchie

conrad wrote:

what will your lenders svr be?

Sorry, I don't know what that is...

I think I'll take your advice though and get some advice...
Can anyone recommend an independant broker?
Do brokers charge me anything?
Anything I should look out for when picking a broker?
How about those London & Country chaps that sponsor the remortgage guide?

Thanks for all the help so far guys.

<EDIT>
Forgot to say, I'm not living in my flat as I moved in with the other half.
Its currently a buy to let mortgage IIRC...

airchie

Worked out what SVR is, Standard Variable Rate.
My current lender's SVR will be 5.790%.

Mrs_Bumble

The fact that you are actually talking about a buy to let mortgage puts a different slant altogether.

I think you would benefit from speaking to an Independent Mortgage Broker, preferably who has access to whole of market. Best way to find one is to ask people who they have got on with, like most things in life recommendation is the best route.

Conrad

Try a free broker, but be mindful of how much work you yourself would do if there was only 'a chance' you would be paid if the applicant doesn't change thier mind at the last / dog die / existing lender come up with a last minute offer / house down valued / divorce etc etc etc etc