Best Fixed Rate Deal for Remortgaging??

Deepindebt_3

Hopefully someone can help me here. I have been looking out for a fixed rate remortgage deal, hopefully without any fees, free valuation, solicitors fees etc. I am currently with Platform Home Loans on a rate now of 6.75%, at the time we had to go off the beaten track and go with a subsiduary lender as our wages were not enough. However, now we can go back to a high street branch as our wages have gone up, and we have a good credit record, but where do we go. Where do I start? I would like to start booking an appointment and get the ball rolling. Any advice would be appreciated.

Thanks

ossie1_2

Get a good mortgage broker and see them as soon as possible. I am not a mortgage broker but know hundreds but not sure if this website allows me to recommend? Perhaps you can advise and I may be able to help.

Whyme?_3-2

ING are currently doing a fixed rate for two years at 4.95%. There is a £495 handling fee, but that would probably pay for itself quite quickly at this low rate. I'm just in the middle of applying for it myself. Be prepared for a long wait on the phone though - their mortgage department is busier than the London Underground.

MortgageMamma

Hi Ossie

The site normal does not like brokers recommending other brokers, and any financial interest you have (perhaps an introducer agreement, whether formalised or not) has to be declared when you recommend someone. From what I've heard the forum mods prefer any recommendations to go on the referral board. I think if you read through the site rules you will find something about it in there

OP - you username suggests you have quite a bit of outstanding credit, which means the annualised payments for you credit will need to be deducted from your earnings before your max borrowing can be worked out - this may not fit all high street lenders criteria, so you would be wise to speak to a fee free whole of market mortgage broker to assess your situation.

Please do not go applying to lenders direct, you may not be getting the best deal available and might not fit their criteria. If you have repeated credit searches by different lenders it can damage your credit rating and make it even harder for you to get a good deal.

alexneale442

I have just been to see my mortgage broker [he arranged my initial mortgage 2 years ago]
I was looking for a 2yr fixed mortgage and after looking at some rates he recommended Nationwide.
The rate is 5.08% fixed for 2 years with a 499 arrangement fee.
Overpayments by 500 per month are allowed.
Interest is calulated daily.
Just offering this as a comparison for you!

Deepindebt_3

Thanks all. Some great info there. I was going to use a broker and started the process, but the fees of £1k put me off as I do not see why I should add to my debt. Yes MortgageMamma I do have quite a bit of debt. About 15k, which I am hoping to put half on the mortgage and keep half on 3.99% life of balance card I have, then finish paying that off as soon as possible. I have taken that into account and should still be ok at a high street branch.

Thanks alexneale442, I previously looked at Nationwide and I thought that was a great deal. Put our earnings figure in on their internet site, plus the debt and it came out that we could borrow enough. So will give them a call and at least arrange a meeting.

MortgageMamma

Remember when arranging two year fixed rate mortgages that the interest is often front loaded, so, when you come to remortgage again in two years there is little or sometimes no difference in your capital balance. When looking at a key facts mortgage illustration always remember to check the capital balance at the end of the incentive term. after all, whats the point of switching mortgages, paying an arrangement fee and poss a valuation and legal fee's if at the end of it there's not going to be a big difference in your capital balance?

alexneale442

the 2 year fixed that i am looking at is repayment. So after 2 years the capital repaid is almost 5K on a 95k mortgage. Which i though was standard and certainly matches my 2 years variable rate on my current [and soon to be ending] mortgage
What do you mean by front loaded mortgagemamma? Not questioning your wisdom, just trying to understand!!

herbiesjp

Nationwide are changing their deals on 19th so get your skates on if you want them.

OP - you haven't posted any figures but if you fit the NAtionwide affordability calculator then you should be able to fit many other lenders also. Make sure sure you can compare as many mortgages as possible in order to be sure you are getting a good deal.

As long as you have no adverse credit history you should be able to find rates far lower than the Platform deal .

HTH

ossie1_2

MortgageMamma wrote:

Hi Ossie

The site normal does not like brokers recommending other brokers, and any financial interest you have (perhaps an introducer agreement, whether formalised or not) has to be declared when you recommend someone. From what I've heard the forum mods prefer any recommendations to go on the referral board. I think if you read through the site rules you will find something about it in there

Thanks for this. I do have personal informal arrangements which I use for family and friends mortgages ( normally fatal recommending these!!! ) but wouldn't recommend them to people I don't know. However, I do deal directly and have dealt with regularly many advisers and contacts over the last 20 years and would happily recommend them to people who ask with no financial gain involved for myself.

Will check the website details for further guidelines on this area. If what you have indicated is true, I am surprised that so many can happily give advice/opinion on all sorts of regulated information so freely on this website with so little knowledge other than their small amount of personal knowledge ( mortgage/financial advisors excluded in this comment naturally )

SmileyC

Hi.
I read Mortgagemammas recent post with great interest. We are in the throws of re-mortgaging at the moment. Original loan was for £100K. Our remortgage will be for £88K, since we able to pay off a chunk before we remortgage.

This time, we chose a fees free 2year fixed rate with C&G. Rate is 5.25%. We saw an ind. fin advisor and this seemed a good option, especially since interest rates just went up and will probably rise again next month, according to the news.

We decided on fixed since I have stopped working to bring up our baby and we anticipate a 2nd child in 1-2 years-hence I will not be earning for a number of years and so fixed rates would give us the stability we need. But I read your comment about the interest being "front loaded" on fixed rate mortgages. I am wondering a) whether the capital we will pay off in the 1st two years is a "reasonable" amount and also what the alternative options are? Given that we are on one wage, we need security.

The keyfacts says that on an £88K mortgage, at the end of year 2, we will have paid off £5250 of debt and £8980 interest. The remaining debt will be £82749. We are intending overpaying by £100 per month and we have checked that this comes off the capital balance. Though I'm not too sure what impact this will have on the debt after 2years.

Advice from anyone who knows whats what would be welcome- we are due to post the C&G documents back tomorrow, accepting the loan. Am beginning to wonder whether we could get a better deal.....