Mortgage in 2 parts - help

getmore4less

DFW is the best place more people to help there, I pop over occationaly will have a look later


The main reason for fixed rates is predictability so try to identify what has gone wrong.

hairbrain05

thank you - appreiciate your help

trulysaintly

hairbrain05 wrote: »

Hello,

We currently have a 2 part mortgage with Halifax which we got when my husband & I got together, I ported my existing mortgage and there is an additional part for when we bought the house together.

We didn't really realise the implications at the time & we got the deal when rates were sky high.

Based on the below would anyone suggest that moving the entire mortgage, both parts, and paying the ERC for Part 1 would be worthwile? Part 2 expires in Sept so we are looking for deal for then.

Our house is valued at 158k and current outstanding amount is 135500.

The first part was for £60,685 fixed until 31/1/14 at 7.24% at £419.61 per month.

The second part was for £76,314 fixed until 30/9/11 at 6.44% at £488.28 per month.

Early repayment charge - part 1 - £1,820

x

Firstly, and this is something that your broker would probably already be looking at, if your deal on Pt2 ends this Sept, you could probably book a new deal shortly.

However, you may consider going onto the variable rate on offer at the end of the deal. Without seeing your mortgage docs it's not right for anyone on here to guess, but the offer doc you received will tell you what rate you'll revert to in October if you do nothing.

Whatever it is, it's likely to be less than what you're paying now.

Your adviser (if whole of market) will be comparing your options both with Halifax and elsewhere.

Loans up to 90% LTV are rare, and expensive (although less than what you are paying now) but it's whether your overall circumstances fit criteria for the lender is what counts.

Hope this helps - be patient with your broker for now, and actively seek their feedback.

getmore4less

SOA on DFW

Mortgage allready over 85% at £135k probably closer to 90%.

other debts of £12k

Joint income probably under £37k so debt income multiple around 4 before £2K+ fees to remortgage.

In Sept when the fix ends on one bit there are 2 years 4months left on the other bit @ 7.2%, with ERC of £1800 the rate would need to drop to 5.82% to break even, any other fees would push it lower say there is a £500 arrangment fee on top that needs a drop to 5.44%

Now depending on what the other part reverts to(Halifax do say on there web site that you can go to SVR so thats a reasonable default guess) I think it is VERY unlikley there is a deal out there that will save them money.

Whats the best 90% deal at the moment? Halifax 85%+LTV fixes are over 6% so if other lenders are in line with that it won't be worth switching.


They may have a better follow on but even on SVR they will struggle to find better than what they have.

hairbrain05

thanks guys - i am digesting the info.... joint income is £43500 at present

getmore4less

hairbrain05 wrote: »

thanks guys - i am digesting the info.... joint income is £43500 at present

O thta helps a bit but probaly not enough.

Where is the money going your net incomes on the SOA does not match £43500 using the i-resign.com calculator.

http://www.i-resign.com/uk/financialcentre/tax_calculator.asp

hairbrain05

that the monthly salary we receive after tax?

i get £22,500 plus Child Benefit, plus £10 per wk tc
oh gets £19,500

getmore4less

hairbrain05 wrote: »

that the monthly salary we receive after tax?

i get £22,500 plus Child Benefit, plus £10 per wk tc
oh gets £19,500

the SOA had

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 1100
Benefits................................ 120

i-resign and listen to the taxman have net
http://www.i-resign.com/uk/financialcentre/tax_calculator_tool.asp?txtGrossSalary=22500&radAge=1&txtStudentLoan=0
http://listentotaxman.com/index.php

£1454 £1471
£1281 £1301

Both higher than your net, I would check your deductions

perhaps there are pension paymnets.

Have you looked at childcare vouchers?