Re mortgage advice wanted please!

whippetboy

House value £120k
Mortgage value £93k


I bought my council house (right to buy) in march 07 on a 3 year intrest only fixed at 5.89%. so i am paying £456 a month, at the time i could not afford to pay the capital but now i can afford about £600 a month.
I want to start to pay the capital this is my first ever remortgage and i have read that on avarage it costs about a £grand, is this right?
I have never missed a payment or anything like that.
Also what type of mortgage deal is best right now?
And when should i start looking to change things and how long will it all take.
Thankyou for raeding my question.

Cannon_Fodder

use http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml to see how repayments change at different terms/interest rates.

i.e £93,000 over 25 years at 6% is £606 a month.

Now can be good for getting a tracker, as long as its one without exit fees, so when interest rates rise, as they will either this year or next, you can switch to a Fixed deal.

If the fee to start a Tracker is high, and you lean towards rates rising later this year, then maybe straight to a Fixed deal would be the better option.

Conrad

A fairly typical fee on a remo is about £1000 as you say.

Start looking now. Some lenders such as Abbey and Woolwich can take 3 months or so to sort.
If you keep the loan to 75% of the home value, you will get a MUCH better deal.

Note your other option is to stay wioth current lender if they offer you a nice low variable rate to stay. They might even have a fixed rate but again 75% will drop you into thier lower cost range.

Arrange your own life cover and insurance, not that via a broker or lender.

All the best

As for which type - well it's up to you as there is no 'best'. If you want payment security and are prepared to pay a little more then a fixed rate is the way to go.

pault1

My wife would like to buy my father in laws house as he gets the full council discount, because he is 64 the bank we went to see, say that because of his age he could only get a mortgage over 10 years. Is this the case with all banks and building societies.

herbiesjp

Check when your deal actually expires - some will run for 3 years from when you completed the mortgage, other will have a fixed expiry date on the 3 year fixed rate which may or may not be a full 3 years.

Now is the ideal time to start looking - around 2/3 months beforehand.

However first port of call has to be your current lender - so firstly find out what they can offer, and then compare against what else is on the market.

Who is your current lender? Have you spoken to them yet?

herbiesjp

pault1 wrote: »

My wife would like to buy my father in laws house as he gets the full council discount, because he is 64 the bank we went to see, say that because of his age he could only get a mortgage over 10 years. Is this the case with all banks and building societies.

Paul

You would be better off starting your own thread, so as not to mix up your question with that of the OP

In brief - different lenders have different criteria, but maximum age 75 appears to be what most lenders have at present

whippetboy

herbiesjp wrote: »

Check when your deal actually expires - some will run for 3 years from when you completed the mortgage, other will have a fixed expiry date on the 3 year fixed rate which may or may not be a full 3 years.

Now is the ideal time to start looking - around 2/3 months beforehand.

However first port of call has to be your current lender - so firstly find out what they can offer, and then compare against what else is on the market.

Who is your current lender? Have you spoken to them yet?

No i have not but firsdt thing tomorrow...the lender is i-group

herbiesjp

Right - double check, but I doubt they will offer you anything competitive.

Why were you with IGroup in the first place? Was it adverse credit?

If so, what kind of adverse credit?

whippetboy

herbiesjp wrote: »

Right - double check, but I doubt they will offer you anything competitive.

Why were you with IGroup in the first place? Was it adverse credit?

If so, what kind of adverse credit?

Yes i went with a broker called haden glen it was a self cert as i was self employed, i understand i got a bum deal !

herbiesjp

Ok - well we will not dwell on the merits of self cert.

How many years accounts do you now have?

What has been the NET profit in each of those years?

Hopefully you will be able to go onto high street rates now

whippetboy

herbiesjp wrote: »

Ok - well we will not dwell on the merits of self cert.

How many years accounts do you now have?

What has been the NET profit in each of those years?

Hopefully you will be able to go onto high street rates now

Since Feb 08 i have been employed full time earning 25500PA
So i think this will help?