Advice please-new mortgage

dooper

Hello,we currently have a home which we are looking to sell. There is only £12000 outstanding but it is on an SVR mortgage. We need to borrow £60k for the new home. Would we be better paying off the existing mortgage and taking out/looking for a new one in the wider market, OR going back to our existing mortgage co and renegotiating the deal to include the new borrowing from them? Thanks...

homer_j_3

The straight forward way to do it would be go to a whole of market broker to get you the best deal for the new property. If you are on SVR then there should be no reason to stick with the same lender unless they can provide the cheapest deal for you out of the whole marketplce.

joepubli

My advice is to use the comparison tables to find the best one you can and then see if a broker can better it. If he/she can better it (after their fees) then they are worth it.

there are four parts:

1. Fixed or variable - usually variable is cheapest but fixed provides more certainty.

2. How long - are you happy changing every couple of years or would you rather not go through this every couple of years. If you are buy and forget sort then go for something like a tracker with low fees. If you are a mortgage tart then you need to be able to work the numbers.

3. Tie ins: My advice is to never accept long tie ins. A year or two should be max. And don't just look at what you would pay in the first year - look at second and third as well. There are plenty of companies that top the tables because of low rate in the first year and then sting you afterwards - and they tie you in.

4. Some have hefty application fees and charges.

I reckon the Barclays lifetime is pretty good at base+0.19 if you dont need more than 75% of value. Ask a broker to beat it over a three year period WITHOUT penalties!

Hope it helps
Joe

herbiesjp

Agree with Homer

If your lender can offer you the best deal on the market for your circumstances then indeed stay with them, otherwise have a word with a whole of market adviser and let them find you a good deal