Mortgage Advice

Matt1982

Hi

Some lenders are looking to get rid of their book and so are not currently lending. This is probably the reason your reversionary rate is higher once the fixed rate ends (basically be charging a higher rate they are wanting you to leave them as they need to get the money back in - hope that makes sense).

Who is your current lender? what is your current interest rate?

If you were to remo with another lender could you reduce your loan amount or is £225,000 definitely needed?

monkey_fan

Matt,

Yes that does make sense. It is ultimatly with Citi Bank but through Future Mortgages.

Yes £225K is the amount I need (I wish it was less!!) and it is going up to 6%. I have just been speaking to customer services (it has to be said the company has been good to work with as in the poeple I speak to are nice and helpfull) and at the moment they are offering no cost change of mortgage, eg no penalties. They really must be in the mood to get some money back in.

I will start to talk to a mortgage advisor and see what happens, if anything interesting I will post up here. It could be that we have no choice but to stay and face the bigger bills since my wife stopped working.
Cheers M.

Matt1982

Yeah Future Mortgages are no longer lending.

It mgiht be worth seeing how keen they are get to rid of their mortgage book.....they may be willing to offer you a discount on your current mortgage (this is something some specialist lenders such as Advantage, GMAC have been doing).

You should have choice for the deal you need however this will be if you fit a new lender criteria.....hope you dont mind me asking but do you know why you initially went with Future in the first place. Reason I ask is they were mainly a specialist lender and dealt in sub prime...do you have adverse or did you go with them for another reason?

TrickyDicky

The 265k figure you quote - is that what you paid, or what the mortgage company currently values it at?

Just atm, mortgage vcaluers are being quite conservative and given its only just over the 250k threshold, they may well value it at 250k.

monkey_fan

Hi Matt,

Thanks agian for getting back to me. I don't follow, what do you mean by a discount?

I don't mind you asking or even replying! I didn't have a perfect credit history but I have only been well behaved since getting the mortgage. At the time we moved we had just had our first baby plus I had started a new job I was just pleased to get the mortgage as this was the perfect house. I don't regret it and maybe I could have got a better deal. The mortgage broker we used we had used before and is a nice bloke and pretty efficent. I don't think he is whole of market but this was made up by his qualities. My wife has a perfect credit record and like I said mine has not got any worse, in fact it should only be better. I have a credit and I keep to it (although not very much of it through choice, mainly a credit card I use for expenses). It maybe that we don't need a sub prime or it maybe we can't move the mortgage at all.

Thanks again for your response.
Ta M.

monkey_fan

TrickyDicky,

Thats a fair commment and I appreciate that there may well be some change to my value. The house was on the market in 2007 for £275K and a house just down the road was sold at the same time for £285K that is almost identical. To explain would take to long but due to some good home work and insight we did buy the property for £250K. The mortgage company at the time valued the house at £270K so I put £265 as a rough figure. If they do value it at £250K then I am no worse off I suppose.

Ta M.

Matt1982

By discount I mean they may say to you if you can redeem your mortgage by x date then we will accept £215,000 instead of £225,000 you owe. I not saying this is something Future do but its something other specialist lenders have done so might be worth a quick cheeky phone call, worse they could say is no.

What was you historic naughty credit? and when was this from?

monkey_fan

Matt,
Good insight and hey it's worth a phone call.
The adverse credit was based around HP for a car. It's a long story like everyone's and of course I can blame everyone but me. I would suggest that 70% (ok 90% but I'm not looking) was my fault and I can take that. Either way the debt was settled and was settled over 3yrs ago. Since then I have been a very good boy, honest. It didn't go to court nor did was it a default some missed payments and I handed the car back along with a big wod of money. Hey, peoples circumstances' change, it's how you deal with it tha counts.

Matt, just out of interest are you a financial advisor? I don't mind what the answer is, I won't pre-judge and ask why are you touting for buisness! Or if your not, good for you for being helpfull and answering, some companies should could learn from you!
Ta M.

Matt1982

Ok over 3yrs ago cool, will still be on your credit file but if everything is ok since then you may have a chance of getting a mortgage with a 'high street lender'. Ultimately likely to come down to credit score.

I am not a financial adviser but do work in the mortgage market...definitely not touting for business. In all honest I just enjoy finding solutions to scenarios (sad I know)

Tricky dicky asked a good valid question on the valuation...is the £265,000 based on what you paid or current value (if current value who says worth £265,000).....valuers are being cautious.

monkey_fan

Matt,

See my answer to Tricky Dicky for the details. Thanks for being a geek!
Cheers M.