Remortgaging - About to shop around

beancounter1968

Hi

My 3 year Halifax discounted mortgage comes to an end on the 1st April this year and to my eternal shame I have kept myself out of the mortgage loop during this time. I feel like I am learning all over again! So I was just wondering on peoples thoughts on when I should start to shop around for a new deal. Is there anyone in particular that I should be looking at?

I am also looking at raising about £3k to carry out home improvements and would like peoples thoughts on adding this to my mortgage. My circumstances are such that I do not have sufficient funds available each month to carry out these improvements but they still need to be done.


Current Mortgage £68k
House Valuation £160k

Remaining Term 16 years

Thank you for taking the time and read and a double thank you for any advice that you provide.


Phil

Martinslovechild

I would start shopping around now. If you're planning on shopping for a fixed-rate deal, then ensure you make your application a few days before Thursday 8th February, which is when the Bank Of England Monetary Policy Committee will announce their next decision. Recent inflationary figures suggest that another rate-hike is on the cards for February, therefore it would make sense to apply for your mortgage before then.

If you're planning on a discount deal, then you'll be hit by the rate rise either way.

As for adding the £3K to the loan, hopefully the difference between the rate that you would be on with your existing lender and the new lender will cover the majority of that amount over the coming years.

If you could afford to pay £3K off over 10 months (i.e. £300 per month), then I would strongly suggest that you apply for a 0% card, e.g. Sainsbury's Bank, which offers 0% on purchases for 10 months. As a comparison, the cost of borrowing £3K on your mortgage over a 25-year term is likely to be £4500 in interest alone.

churchmouse_3

Just about to remortgage as well ,so did a bit of shopping around and was horrified to see ARRANGEMENT FEES of up to £2,500 and above. I would love to know how much work goes into signing a form.......It stinks of dodgy bank charges again... Sort em out Martin!!!

regularsaver1

Only for the really low rates? are the high fees

When looking elsewhere check what existing lender can offer you, and allow for the (early discharge fee £175 Halifax and £50 deeds dispatch fee). A broker would point this out.

http://www.halifax.co.uk/mortgages/notmovingjustswitching.shtml

These are the current rates to just do a product transfer

Rick62

If you want a Fixed rate mortgage sort it out as soon as possible. Rises in Fixed rates are not generally in response to base rate changes but in anticipation of rate changes - the unexpected increase last week being an exception that caught all the lenders out.

Most Fixed rates are being increased by lenders. Nationwide still have good rates, until tomorrow (Friday) and Cheltenham & Gloucester have good fixed rates, but exclusives through brokers.