Need a new mortgage - no idea!!

Ivrytwr3

Hey all,

We would really appreciate some help and advice on this one please!

1. We currently have a mortgage with A&L; the 5 year fixed rate is due to end Dec 2010.

2. The purchase price of the property was £94k and the mortgage was for £84k (we have about £76000k left to pay) - Edited to add So deposit will be the equity, approx £23500k

3. Our house has sold at £99k and the next property we are looking at will be about £170k - £180k.

4. No savings (well, enough for moving, solicitors fees etc).

5. Joint income is about £40k.

6. Looking at a fixed rate of 5 years.

Can anyone offer some advice for the best deal for us?

If you need any other info, please let me know!!

Thanks for all who help!

herbiesjp

What deposit do you have to put down after taking into account stamp duty, solicitor/agent fees, removal fees etc?

Do you have any other outstanding debts?

beecher2

You'll also have to pay an Early Repayment Charge unless you're considering porting the mortgage.

Ivrytwr3

herbiesjp wrote: »

What deposit do you have to put down after taking into account stamp duty, solicitor/agent fees, removal fees etc?

Do you have any other outstanding debts?

£20k equity - that will be our deposit (no other savings).

Other debts are:

Less than £500 credit card bills

Less that £1k loan

Household bills!!

Ivrytwr3

Just had a quote from Co-Op

Would allow £157500

5.89% fixed 5 years
£499 fee
25 year term

£999.47 per month.

Ivrytwr3

A&L can only do a 3 year fixed and that comes in at £1113 per month with fees on top.

dimbo61

Why the difference ?
The coop deal is over 25 years yes
Is the A&L deal over 20 years ? so the mortgage finishes at the end of the 25 year term.
Are they porting over your old mortgage deal and the rest on a new deal or allowing you to move to a new 3 year fix with no ERC
You need to check this with A&L
Why move/sell house with 6 months left on a deal ( paying ERC)
What rate is the A&L deal and are you happy with them

Ivrytwr3

dimbo61 wrote: »

Why the difference ?
The coop deal is over 25 years yes
Is the A&L deal over 20 years ? so the mortgage finishes at the end of the 25 year term.

both 25 year terms

Are they porting over your old mortgage deal and the rest on a new deal or allowing you to move to a new 3 year fix with no ERC

apparenlty cannot port due to them requiring 15% deposit. We would need another £4k to meet this


Why move/sell house with 6 months left on a deal ( paying ERC)

OH wants to move.

What rate is the A&L deal and are you happy with them

4.84% and had no problems with them so far.

...................

beecher2

I'm a bit confused by your timeline - you've sold but don't know exactly how much your new house will cost. Why not buy somewhere that keeps you within the 85% LTV - or borrow 4k from family? How much is your Early Repayment Charge - you've got to factor that into the equation too.

Ivrytwr3

beecher2 wrote: »

I'm a bit confused by your timeline - you've sold but don't know exactly how much your new house will cost. Why not buy somewhere that keeps you within the 85% LTV - or borrow 4k from family? How much is your Early Repayment Charge - you've got to factor that into the equation too.

We've accepted an offer and there are 2 properties we are now looking at; 1 at £170k and one at £180k.

Keeping within the 85% LTV will not get us the property OH wants (so no point in moving). £4k from family is not possible.

ERC penalty is unknown at this time.

---

Yes, it makes sense to wait, save a bit more, get within the 85% LTV. But will prices go up or down, will rates do the same etc?

We will be moving with those figures above, so am now looking for the mortgage that will give us the best for our money!

Thanks

beecher2

Find out what your Early Repayment Charge is as this will have to be taken out of your deposit. Details will be in your mortgage offer, or phone up the lender. Have you also set aside money for fees/stamp duty?

I'd advise going to see a mortgage adviser and see what they can come up with.