Money Partners & APS

debt_mountain_2

I am trying to change my mortgate for a better deal.

I am with burmingham midshires and have just finished my 2 years fixed rate. The rate is about to go upto 6.60. I am looking about for a better deal as they are not willing to give me a fixed rate at much less than this.

My rating for the last 12 months has been good, paying mortgage on time and all other payment to cc and loas etc being met.

I still can't get a main stream mortgage because of the defaults from 2 years plus ago.

I have a better deal offered at 6% from APS with Money Partners, looks ok except the early payment fees, which I don't intend using anyway.

Anyone any information on these 2 companies, tried searching but didn't find anything?

https://www.mortgages.tv is the link to APS and
https://www.moneyparners.co.uk for moneypartners.


Was planning on remortgaging and clearing a consolodation loan I have at 12% with this mortgage at 6% and it saves me some £200 a month (in the mortgage loan rate reduction and secured load rate reduction).

Looks like a good move on paper and plan on saving the £200 a month to then pay to the mortgage at the end of the 3 years (£7,000+)

Thanks

CLAPTON

just a point...you say the only problem with the mortgages is the early payment fees (how much?) but you don't intend to used them. Then you say you will pay 10,000 after three years... doesn't this attract some sort of penalty too?

also what is the logic in saving 300 per month for three years then using it to pay off the mortgage?

debt_mountain_2

Clapton

thanks for the reply.

The early payment is 6% (which is why I would never intend using it). That is 1 years payments on a 6% interest rate.

Making a payment at the end of the 3 years is not penalised with the current lender as my fixed rate will have ended but I would also be in a position to move mortgate and make that additional payment to my next mortgate and reduce the capital being borrowed.

As for saving for 3 years and then paying the savings to the mortgage is also a good idea. Reducing the capital is always a good idea.
1. It is like an ov erpayment but having a fixed rate and penalty for making over payments means it would not reduce my capital. Pay in 7k but they charge me 6% would write off this saving and actually cost me.
2. at the end of the 3 years, I pay in the 7k and for the last 8 years of my mortgage this equates to approx 5k savings (0.9 years). So in total my £200 per months equals 12k over the 11 years my mortgage has to go.
3. in 3 years time my credit rating should have improved dramatically so I should also get a far better rate for the last 8 years and plan to take a mortgage that allows overpayment and continue paying the same ammount I am pying just now which (going on current rates) should save about 1% on the rate, £300 a month over payment which would give me a further 5.5k saving (1.2 years). So in total paying my mortgate in 6 years instead of 8.

Cool.

CLAPTON

ok, is the proposed new mortgage a 3 year fixed deal then? and during this time there is a penalty of 1 year interest for early repayment during this period? and you're sure that after the three years there is no penalty for early repayment?

i dont really understand your maths about the 200 but have you considered simply using the 200 to take the new mortgage over a shorter period (obviously costing more per month)?

debt_mountain_2

Clapton

Yes, it is fixed for 3 years and a heavy 12month penalty.

No I hadn't thought of the increasing the monthly payment and reducung the term. Probably because I would like (for once) to have a small safety blanket of saved cash for emergencies. But I will rethink it.

thanks