Enormous 6% redemption, partner split, remortgage needed, now what?

Happyjaw

I don't mind, the longer the better for me but 2 years would do.

beecher2

Happyjaw wrote: »

beecher2 if you mean what have I been offered? I don't know, I've made enquiries with a broker so far.

No I mean what's your salary multiple - ie what's your salary and how much is your mortgage.

Money_Yoda

HappyJaw,

Looking at the figures you quoted and the time left with Future it's impossible to get a better deal overall. Yes you can reduce the monthly payment - but only by giving away huge chunks of your equity.

Whilst you can never guess what variable rates are going to do the general feeling in financial circles seems to be that rates will increase very slowly over the next few years. So if that holds true the Future rate you get at the end of your current fix could still be lower than your current rate, then you can remortgage to a new lenders fixed rate without paying the penalty.

If you are strugglinig with making the payments then it's always best to speak to the APPROPRIATE department at your lender - generally the Collections & Arrears team, they can often make special arrangments to help you.

Happyjaw

I'd much rather not discuss my income on here but apparently I should be able to remortgage with my current income according to the broker and the offer she's looking at is with A & L.
I also have a small amount of savings I can knock the top off the mortgage which I've been saving since the genius ex ensured we could only get interest only at huge rates.

Money Yoda, I'm not struggling to pay it, I'm sick of the company, sick of paying the disgusting interest rate and wasting my money on Future. I simply want a High Street bank or a dependable company with a lower interest rate and with some modicum of customer service. It will save me money which I'm likely to use for overpayments or an ISA for payments later. I would willingly pay a small redemption penalty to escape them but 6% is obscene.
I cannot possibly be saving money by paying £860 a month interest only so the sooner I'm on a repayment mortgage the better.

I wouldn't ever stay with Future at the end of the current fix unless my credit is too badly affected by my ex so I'm remortgaging one way or another, I just don't want to wait. If that costs me a small amount, that's fine.

My concerns are:
If I can have that one bad account removed from my name since I never made any transactions. The bank says it's out of their hands, the debt company say they cannot remove my name until the debt is settled. I don't believe they ever would and I'm not entirely sure they could, struggling to find that info out.

If my house can be valued at enough since it's a new area and sales are weird plus recession effects. The identical house sold brand new is now going for £185 - £195K depending how savvy the buyer is, previously owned houses just aren't selling in this area because new ones are still being built, giving all the fixture and fittings options and the 2 yr NHBC guarantee. I need the house to be valued at £180ish or above to make the 75% loan to value crossover and arrangement fees.

How much the arrangement fees will be.

How much it will cost to remove my ex from the deeds and mortgage at the same time as remortgaging.

Charterhouse

I think you are probably being a little too emotive in your reasons and not fully considering the financial reality of your position. Although the 6.7% fixed rate is way above market, to pay 6,000 to get out of it would mean you need to get a really incredible deal somewhere else, a proposition that does not seem that likely given the issues with your credit previously. The SVR of your current provider at BoE Base Rate +2.6% is actually among the best on the market, believe it or not, and although it obviously could go up I do not believe rates will be any higher by December and probably not until Q2 2011.

If you really are desperate to get on a new fixed rate rather than take a risk with interest rates (even though Bank Base Rate would have to rise above 4% for your floating SVR payment to become worse than the current fixed rate) then by all means consider the options, but you need to be looking at a 2-3 yr fix at close to 3% to make much of a saving based on a sensible projection for base rates. I don't think that's very likely given your credit issues.

Happyjaw

Oh yes I'm definitely emotive. I despise giving money to bad companies.
I would only go for a fixed rate because I need the security of it and I'm hearing there are 2 fixed rates of 3.1% ish out this week, one of those is with A & L which should set a few more banks up with competition leads.
Also, apparently the credit issue can be overlooked somewhat once I can get at the 75% loan to value, which depend entirely on the valuation.

I've written to Future to ask for the penalties to be waived and I've written it with all the info I could muster up. There's a few things the Office Of Fair Trading and the FOS have to say about the 6% penalty so maybe they will waive it in this instance. And if they do, then the A&L 3.1% fixed would be heaven on earth, I'd save £338 a month according to the calculator.