HELP!! Should i re-mortgage or Change Lender??

debt_collector

Hi there. I have a repayment mortgage with Northern Rock which started 26 Sep 05 for 23 years and 5months at 5.09%, the early repayment charge end date is 01 Oct 08. The amount outstanding is £90,692. I pay £542 p/m. If I repaid my morgage now, I would have to pay an early repayment charge of £2,693 and discharge of mortage fee of £250 as well as £1000 help with cost fee. Like everyone in life, I want the best deals and solutions. My question is: Could/Should I re-mortgage for a little extra cash?? Or should I change mortgage companies?? If so, what mortgage company do you suggest I try for the best deal??

Regards

Joe_Bloggs

I don't think any alternative lender or product could make up the early repayment charges and those linked to starting with another lender. You have a good deal that may be about £15-£20 worse a month than the best deal you could hope to get. You would never make the money up by changing now and paying their costs.
J_B.

debt_collector

Thanks Joe. I think your right bout alternative lenders because having rang a few of the advertised best lenders on the market, like you say, I seem to be only £15 worse off. So you reckon re-mortgaging isnt the way forward either yet to boost my bank balance??

Gorgeous_George

Depends if your bank balance is a problem that you cannot resolve by other means.

If necessary, you could borrow more against your home but this isn't usually a good idea. You would probably soon swallow up the extra capital and be looking to add to your mortgage again.

I'm afraid that the best way to cure bank account problems is to earn more or spend less.



GG

MarkyMarkD

Your thread title doesn't make sense. "Should I remortgage (which means change lenders) or change lenders."

Notwithstanding that, you will definitely not save money by getting out of your current loan early. It wasn't a very good product to have bought if you want to get out early as you're tied in, and the help with costs thing ties you in even longer (assuming that the main loan is a 2 year fix/discount). If it is, at the 2 year point you will have to consider whether it's worth swallowing the loss of the £1k in order to remortgage elsewhere, but it won't ever be worth paying both the £1k and the ERC.

homer_j_3

debt_collector wrote:

Hi there. I have a repayment mortgage with Northern Rock which started 26 Sep 05 for 23 years and 5months at 5.09%, the early repayment charge end date is 01 Oct 08.

This woud indicate a 3 year deal so I am guessing that if the "help with costs" option carried the same conditions as today, you have to repay this back in full if you redeem within the first 3.5 years.

debt_collector

Another question I would like put to your good selves!! Buy to Let. Again, like most people I am trying to make my own fortune and pay off debts. My mortgage details are above for all to see. I like the idea of buying a property to let or sell on, whichever profit is the greatest!! In light of my above financial mortgage commitment, could I get a buy to let mortgage without bankrupting myself or should I not even go there!!!

MarkyMarkD

I'm not sure I would recommend getting involved in BTL when you are so new to the house buying game in your own right.

It is definitely not risk free - if the tenants don't pay, or you can't get any, you can be left seriously out of pocket.

debt_collector

Im just looking to get rich quick!! Apart from marrying a millionaire or winning the lottery I want to make money! Am very interested in property, property development etc and just thougth that maybe buying low and selling high maybe an option but dont want to get myself tangled up and in a heap load of debt.

Ian_W

Am very interested in property, property development etc and just thougth that maybe buying low and selling high maybe an option but dont want to get myself tangled up and in a heap load of debt.

You and about 20 million others thanks to Kirsty, Phil, Sarah et al. But at least you realise you could end up with a heap load of debt if you get it wrong - most think you can only win!

The_Mortgage_Lady

Going back to your original post... I think it's clear to see that coming out of your existing deal with Northern Rock would not be financialy wise...

If you do have equity in your property that you want to release then a secured loan may be an idea... basically works like any other loan but will be secured on your property, in most cases a survey of your property will need to be carried out. Usually they can be taken over the remaining term of your mortgage... I'd contact Northern Rock as your first point of call as I'm sure they'd be able to help you...

But definately take note of the post by Gorgeous George!

Hope this helps...