Unable to Re-mortgage , what are my options ?????

getmore4less

Did you keep your payments the same when you went onto the lover SVR so you started overpayments?

Have you looked at your budget to see if you can overpay more?

£45k is around £2740-£2900pm take home.

Should have about £1500 to thow at the debt which is £200pm overpayment on a 20y mortgage at 5% and will bring the term down to under 15years.

Whats the current rate?


Fixing for 2-5 years only delays the inevitiable if rates do go up.

Overpaying is the ONLY way to get you payments down in the long run.

967stuart

Well the rate we were paying was approximately 6.29% and its come down to just over 5% , in all I think its 'saves' us a bit over a £100 a month, which we are setting aside incase the rates go up.

I do like the idea of paying the mortgage off as soon as possible to be honest.

Do they let you overpay a set amount each month (is this dependent on the type of mortgage / Lender we have ?).

Overpayment seems like our only real option I guess at the moment then.

ALIBOBSY

Give your mortgage company a ring and they will let you know how much overpayment you can make. On ours we can pay upto 10% of the balance per month, we can pay more but they would then adjust the direct debit down to fit the period left to pay and having 3 kids-one more due in May we wanted to keep flexible and split any extra we have between the mortg and savings as well as not reducing the payments in months we need the money elsewhere.

The girl I spoke to in our mortgage department was very helpful (but then again you are offering more cash so of course they will like it lol). We could either pay via direct banking, over the phone to the mort dept or increase the DD by a set amount each month.

Each mortgage and bank seem to have slightly different rules and terms so worth checking.

ali x

967stuart

Have just called them up to find out how much we can over-pay by and they have offered us a deal !!??

One and a half year fixed rate at 5.49% (no-fee)

Or

Two and half years fixed rate at 5.99% (no fee)

We would be able to over-pay by 10% each month.

Should we take one of these deal ??? and just overpay each month ?

property.advert

Decline both those terrible offers

967stuart

really ?
we are on the varible rate at the moment 4.99% which could go up at any moment for peace of mind would it not be worth going on the 5.49% and just over paying as much as we can each month ?

Pincher

Can you do better somewhere else?
I'm already surprised they let you remortgage, since they said no before.

967stuart

We were also amazed that they have put a couple offers on the table for us when only a couple of months ago they wouldn't.
Maybe we should have a quick shop around and see if we can do a little better.
To be honest though Im really leaning towards the 5.49% one, for the peace of mind and knowing what i will be paying each month I think this is the way to go.

Im guessing the property value in the area has gone up again ?? why else have they suddenly done a U-turn ....... strange !

getmore4less

I would have a poke around for another deal but make it clear they are trying to beat the deals on offer allready(include the SVR rate in the list)

This makes it clear you have been accepted for a deal by at least one lender.

I would take the risk and stay with the lower rate and overpay at least at the payment the 5.99% one would be.

If I get time later I will do the numbers for this where the rate stays low for 1/2 the time then see what it must go to to be worse off.


What is you payment limit in case you need to fix later?

Pincher

They say prices are up 10% since the bottom, so that's your LTV getting more respectable.