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Fixed Rate coming to an end and a bit confused
fluffymovie
Posts: 1,417 Forumite
Hello MSE's!
We have a 5 year fixed rate deal set at 5.29% which comes to an end in July. I am a bit confused about our next steps so wonder if I could pose some questions to see if anyone could advise!
1 - When the current deal ends, we will move onto SVR. This is a fair whck lower at 4.25% from memory so that would save us a little each month. However, what happens if I get scared and decide to fix? Would there be less deals offered by our current lender than if we fix at the end of our curent deal?
2 - If we do decide to move mortgages, do we have to remortgage and pay for new fees like valuations etc? If so, can we add these onto the loan?
3 - If we do decide to remortgage, could we borrow more to clear some debt probably about £10,000 on a current mortgage of about £110,000?
4 - My husband took out a secured loan from First Direct on the property to clear debts after about a year in the home. I co-signed as we are joint owners. Would this affect any mortgage deals from other lenders? Would we be able to borrow to clear this from the mortgage?
Really sorry to ask so many questions but I will be booking to see a financial advisor but would like to know what I am asking about really!
Many thanks for your help with this in advance all.
We have a 5 year fixed rate deal set at 5.29% which comes to an end in July. I am a bit confused about our next steps so wonder if I could pose some questions to see if anyone could advise!
1 - When the current deal ends, we will move onto SVR. This is a fair whck lower at 4.25% from memory so that would save us a little each month. However, what happens if I get scared and decide to fix? Would there be less deals offered by our current lender than if we fix at the end of our curent deal?
2 - If we do decide to move mortgages, do we have to remortgage and pay for new fees like valuations etc? If so, can we add these onto the loan?
3 - If we do decide to remortgage, could we borrow more to clear some debt probably about £10,000 on a current mortgage of about £110,000?
4 - My husband took out a secured loan from First Direct on the property to clear debts after about a year in the home. I co-signed as we are joint owners. Would this affect any mortgage deals from other lenders? Would we be able to borrow to clear this from the mortgage?
Really sorry to ask so many questions but I will be booking to see a financial advisor but would like to know what I am asking about really!
Many thanks for your help with this in advance all.
I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
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Comments
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Does your house still have sufficient value, when you add up the mortgage, secured loan and extra borrowings you wish to make, and leave 10%+ leeway..?
If not, sit on your SVR and overpay.0 -
Yes we are quite lucky. House was £220k and our mortgage was £120k. the secured loan was £19k.
Any extra borrowings would be minimal if possible as I am quite careful with my money!I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.0
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