no need to remortgage? and adding on a partner

sensiblesaver_2

Hi

I'm coming to the end of my fixed rate mortgage with GE money in March 2010 and will be going onto 2.04% above Barclays base rate which seems pretty good to me (until rates rise again at least.) My first question - is this the best deal I can get? Does anyone know of any hidden catches that I'm overlooking here? I've looked around and can't find anything better (my LTV is 80%.) I guess I'm just worried because I know that GE is a subprime lender and I'm finding it hard to believe that it's actually cheaper to stay with a sub prime lender then to change!

My 2nd question is that I want to add my other half onto the mortgage in March. As far as I can see, there is £100 charge from GE to add him name on. But is that all I need to do? Do I need to change the names on the deeds somehow or through a solicitor? I'm not worried about the level of money we've put in etc because he's putting in a lump sum so we've all even. Also, I know I had to get life insurance when I got my mortgage, but does he also need the same insurance or do we need some kind of joint insurance?

Any help or advice would be very much appreciated!

opinions4u

sensiblesaver wrote: »

I'm coming to the end of my fixed rate mortgage with GE money in March 2010 and will be going onto 2.04% above Barclays base rate which seems pretty good to me (until rates rise again at least.) My first question - is this the best deal I can get? Does anyone know of any hidden catches that I'm overlooking here? I've looked around and can't find anything better (my LTV is 80%.) I guess I'm just worried because I know that GE is a subprime lender and I'm finding it hard to believe that it's actually cheaper to stay with a sub prime lender then to change!

I'd stick with that tracker deal!

My 2nd question is that I want to add my other half onto the mortgage in March. As far as I can see, there is £100 charge from GE to add him name on. But is that all I need to do? Do I need to change the names on the deeds somehow or through a solicitor?

Solicitor. Cost will be around £250ish.

Also, I know I had to get life insurance when I got my mortgage, but does he also need the same insurance or do we need some kind of joint insurance?

He doesn't have to have life assurance, but you are right to consider it.

If you want advice on life assurance, critical illness cover and other protection, I'd suggest you track down an IFA via www.unbiased.co.uk.

If you want to get a quote for yourself here's a link.

sensiblesaver_2

That's what I suspected, thanks for confirming that. One more question! My term with GE was 30 years (well, 28 in March 2010). I know that it's more realistic that we will have paid off the mortgage in around 7 years or 10 at the worst. Do we need to get GE to change the term? If we leave it at 30 years and we end up paying it off early, does this mean we will get early repayment fees? I phoned GE to ask them this but the guy on the phone wasn't very helpful and confused me completely.

Thanks

opinions4u

Most mortgages, after the expiry of the initial rate, will allow you to overpay.

I would check your original Key Facts document first though or, alternatively, phone back GE and hope you speak to a more helpful person!

tez_c

I think sticking with a tracker for now might be better given that the BoE Rate isn't going to rise dramatically anytime soon,

Wutang_2

tez_c wrote: »

I think sticking with a tracker for now might be better given that the BoE Rate isn't going to rise dramatically anytime soon,

What are you on?? Am I missing some subliminal spammage here?

sensiblesaver_2

Hi, our fixed rate as now ended 3 days ago so I phoned GE today with some questions. I wanted to pay £15k off the balance off the mortgage. GE said that I could either pay it and they would hold it as a credit to cover any future missed payments etc (so a completely pointless option with no benefit!) Or they will take the payment, charge me £30ish ERC (1 months interest of the £15k) and then our monthly payments will come down respectively. I asked if it could just come off the capital and reduce the term not the payments, and they said no.

My questions - how can they charge an ERC when I'm off the fixed rate? I've read the sticky about ERCs and I understand they are usually charged to get off the fixed rate. Or have I misunderstood this?

Is there any benefit at all to paying the £30 to pay the £15k other than a marginal interest saving? We will only stay with GE until the base rate begins to rise and plan to move in 1 or 2 years anyways so won't be with GE for the full 28 years.

Finally, if we were to remortgage tomorrow, we would pay a slightly higher interest rate and obviously arrangement fees, but we would be able to take the £15k off straight away (and there will definately be more future overpayments.) I would also reduce the term of the morgage (and therefore the interest paid overall.) I can't work out what maths to do to work out if we would save money by remortgaging tomorrow or sticking with the lower monthy payments and keeping our savings in the bank until the next move and remortgage?

I would really appreciate any advice on this