Fixed rate ends July2010, when and where??

missma

Hi

Fixed rate ends in July and been told the SVR is currently 5.99%, anyone any idea of better deals? When should we start applying? Or is this an ok rate?? Mortgage is for about £90000, house worth about 20k more than this.

Thanks

Gorgeous_George

There are better rates available. First Direct for example offer a number of mortgages that beat 5.99%. You might want to improve your LTV slightly by taking a personal loan.

Who are you with at the moment? Is it Chelsea? 5.99% is high.

GG

missma

With accord, currently on 6.29%.

Dan_1976

That will be why its high then. BEfore you go getting a personal loan, make sure your income is enough to cover the mortgage, a personal loan could mess about with your affordability.

It is a good idea but you have to check first, also check against rates etc.

I would look at options lightly now, check your income and affordability, but you should not worry about applying until about 2 months before, say start of May. Keep an eye on rates incase the look like they are rising, then you may act faster.

missma

Not sure about the personal loan, we already have one with about 5k left for our car. A mortgage advisor told me before when I was given very poor advice by another unreputable advisor, that if a mortgage company finds you are applying for a personal loan that could mean they will not lend to you at all. The property may be worth more than £110000 is hard to tell in current market. Houses on street probably if in anything not as good condition ranging from 122950- 160000. I think the latter is definitly unabtainable. We have a little savings which we could possibly use to overpay. I also worry with pending election rates may change quickly
Thanks

bankerwithaheart

Accord Mortgages are known as a SubPrime lender, which means their rates are a lot higher than most competitors. SVR's for most main banks are much lower . i.e. halifax 3.5%.

A lot of lenders have started putting their SVR's up, probably in anticipation of base rate rises.

Best advice, get a copy of your credit file now, check there is nothing on there that could prevent you getting a more mainstream mortgage rate, if there is you have time to clear it up before your deal ends. Start shopping around for offers, ask them not to do an application yet, these all show on your credit file and will not help you in the long run.

Only once you have found a deal right for you, then get them to do the application.

don't over pay yet, you'll be paying money off with way too much interest to pay, wait until you find the right deal, and then if you need to pay money of to reduce your LTV do it then, not until.

Hope this helps.

missma

Hi,

We both have excellent credit scores I checked mine with Experian two weeks ago and it is 999 (think thats the highest it can go). We only really have a 5k loan. Our wages are 48k plus between us before tax. We probably do hope to move to bigger property in next couple of years.

I know when we were applying for that mortgage we had applied to Woolwich but with the drop in house prices, they were not offering the rate we applied for. I also know we panicked to get a fixed rate as back then there was a lot of hype in media that the rates would go up. I also have some recollection that my husbands wages were not taken into consideration as then he was on a temporary contract.

We have used The Mortgage Shop twice in the past I wonder are we better to go to lenders ourselves.


Thanks alll very much

I hate thought of getting ripped off

dimbo61

This is I think one for a good "whole of market mortgage broker" to help you with.
Your credit score is very good and you husbands income may now be taken into account.
Can you overpay the mortgage ?
Is accord offering any good deals for you to stay with them ?
Can you overpay/ pay a lump sum off in July to reduce the mortgage and increase the equity. Better LTV might get a better deal

missma

Have not checked with them all I have been told is that it goes to 5.99% SVR. We could afford to overpay possibly £150-200 a month or would by then have about 3k plus we could pay in. Do not want to use every penny of savings need few pound for emergency. Others above though have said not to overpay. Are we better waiting to add a further deposit at remortgage stage. "Whole market lender" are the likes of our previous broker above one of these.

I think also we need to look at out mortgage insurance etc as is all with L and G feel may get better elsewhere.

THANKS

missma

What percentage loan to value do most lenders look for to get a decent fixed rate mortgage?

somethingcorporate

Just looking in to this ourselves now and after a brief bit of google searching for 5 year fixed the best deals we could find for:

75% is around 4.69%
80% is around 5.09%

Any higher LTV and they start to get pricey.