Where to go?

harrisc

Hi -

time to re-mortgage - what are the best deals out there please?

House worth £165k
Current mortgage £80k
New mortgage required £120k
I earn £5789 (will be going UP next year when I return to work full-time as son will be going to school)
Partner earns £26800 with 2 £1000 bonuses a year (his P60 shows earnings of £29,980k)

Fixed rate for 3 or 5 years for a 25 year term

We do have debts and monthly outgoings to pay these each month but upon re-mortgage these debts will be £0 as we are paying them off

What deals then please? Thanks

tomstickland

You need to speak to a whole of market broker.
Moving debts onto your mortgage isn't always the best way of doing it. Because you are spreading the loan over 25 years then you end up paying a lot more of it back.
Then again, if you manage to get a good 2 or 5 year fix then the rate might be in the mid 4s, and a mortgage that allows overpayment can be used.

harrisc

we can't see another way of sorting ourselves out, I've lost my well paid job and we now have debts that we would like to clear to make living easier. plans are that we take this mortgage out, hopefully get a good rate and payment and my monthly wages, upon going full time, will going into a high savings account to make lump payments each year.

tomstickland wrote:

You need to speak to a whole of market broker.
Moving debts onto your mortgage isn't always the best way of doing it. Because you are spreading the loan over 25 years then you end up paying a lot more of it back.
Then again, if you manage to get a good 2 or 5 year fix then the rate might be in the mid 4s, and a mortgage that allows overpayment can be used.

herbiesjp

As has already been stated in the short term your outgoings will be cheaper, but long term if you do not clear these extra amounts, you will be paying more these debts that you have consolidated onto your mortgage, as potentially you will pay for them over a longer term.

You appear to be addressing this though by stating you want to make capital overpayments which is a good idea if at all possible.


Dont forget that you will be placing current unsecured debt onto your mortgage thereby making it secured debt against your property.

WHat deals available depend on what you are looking for though i.e do you want cheapest deasl with fees or do you want higher rates but with low fees? Do you neeed extra flexibility with the mortgage apart from overpayments?


I think you should discus your scenario with a whole of market adviser in detail, and let them guide you to the best possible scheme for you in your situation.