Recommend me a mortgage

longwalks1

Here are my details:

Property value: £170,000
Remaining mtg: £105,000 (18 years left) fixed at 4.95%


Id like to additionaly borrow more and up to a LTV of 80%, what good deals are out there at the moment?

dimbo61

You have a mortgage and its fixed at 4.95% which is a good rate with your LTV
How long have you got left on the fix and whats the ERC,s ( early repayment cahrges)
If you start with your existing lender and see if they will give you the additional borrowing you want.
They will want to know what you want the extra money for?

GMS

Consider a second charge for the additional borrowing. That way you can keep the good rate you have on the mortgage now, save on the ERC, and have a 1 month ERC only on the second if and when you decide to consolidate the 2.

Rates are not great as a stand alone but when considered overall it may be the solution.

longwalks1

Cheers people

dimbo61, I asked FDirect, my current lender and was initially agreed, then when i returned my supporting docs was turned down as they only took into account my base salary (£32.5k), and not my contracted overtime and shift allowance (combined = £8k pa), i phoned them and explained but still no joy Hence needing to look elsewhere

My ERC to get out the fixed deal is £2,200 and fixed for 2 1/2 more years. The additional money is for full home improvements


GMS - Was hoping to borrow whatever I can on a flex/tracker mortgage with possibly a 2yr tie in, so can combine the 2 in 2 to 2 1/2 years time (and avoid the £2,200 ERC from FDirect), are there any good deals out there at the moment please? (lots seem to have a £999 set up fee, which immediately ramps up the cost )

What good comparison sites do people use to view deals? The few I've stumbled on seem to want all your contact details so an advisor can call you

Thanks in advance

GMS

A second charge would run alongside the current deal. Do not look at other mortgages on comparison sites. These will be first charges meaning the current would need to be repaid.

It is difficult to say without knwoing your circumstances but a second may be something you could use.

Rates would be higher but no ERC to be paid. You would keep current good rate on the vast majority of your borrowing with the higher rate second charge on the smaller amount.

Your ERC would work out at roughly £80 per month for the 2 1/2 years so you need to see if this is worthwhile financially.

If a second charge cost £60 per month over and above your current rate it could work out cheaper overall.

Alternatively look for a longer term fixed rate which may swallow the ERC.

Or do the work with a second charge which may improve the value of the property, then remortgage on to a potentially lower LTV product meaning better rates.

longwalks1

Thanks again GMS, who are offering a good second charge at the moment, anyone worth looking at?

GMS

I would not recommend a specific as I do not know your circumstances.

You should have a chat with a broker who deals with secured loans,

Thrugelmir

Quick turnaround in your fortunes.

https://forums.moneysavingexpert.com/discussion/3098906

longwalks1

Only change is am now safe from redundancy, still on the same wage so hardly a turnaround, but thanks for your concern