Sanity check please - Does this sound like a good deal?

elliejay_2

Looking to remortgage in my name only due to seperation. LTV will be 80% (providing the valuation comes up ok!).

I'm happy to gamble a little on rates staying low for a while, so I was looking at the ING lifetime tracker at Base +2.69%, fees of £945.

Does this sound like a decent deal - have I missed something better?

Cheers in advance for your help guys.

Oxid8uk

I recently got an 80% LTV lifetime tracker mortgage with HSBC - tracks at 2.49% above BoE rate. Fee was £399 (if an Advanced Customer), £599 if not. I opened an Advanced Customer account to get the lower fee (however there is a monthly charge for an Advanced account but over the year the total charges are less than the £200 difference between non-Advanced and Advanced customer, plus you get free breakdown cover and travel insurance and other 'perks').

I can also overpay as much as I want and there is no early repayment charge so if base rates start rising I can remortgage to a fixed rate if need be.

dimbo61

Why are you " happy to gamble" with the biggest bill you have to pay every month?
This is a big decision and we have so little information about you!
Kids, income, maintence, LTV ( 80%) size of mortgage and other debts, credit score/history.
Maybe a 5 year fix might be better for you WHO KNOWS !
Perhaps its time to speak to a" whole of market mortgage broker " you would not buy a house without a solictor or a survey by a surveyor would you
Big decision

elliejay_2

dimbo61 wrote: »

Why are you " happy to gamble" with the biggest bill you have to pay every month?
This is a big decision and we have so little information about you!
Kids, income, maintence, LTV ( 80%) size of mortgage and other debts, credit score/history.
Maybe a 5 year fix might be better for you WHO KNOWS !
Perhaps its time to speak to a" whole of market mortgage broker " you would not buy a house without a solictor or a survey by a surveyor would you
Big decision

Happy to gamble as I'm currently on a fixed rate of 5.39%, so can take the opportunity to overpay the difference whilst interest rates catch up to where I currently am.

No kids, decent salary and credit history. Five year fix rates seem high to me at the moment. I'm just coming to the end of one five year fix and my gut feeling after lots of research is that it might take a while for rates to get up to what I'm paying now, plus there is no ERC so I can switch to fix if things start moving sooner (hopefully having got down to 75% LTV by then).

If I have missed any info you need, let me know.

Oxid - I spoke to HSBC as an initial enquiry (I'm a Premier customer), and they would only go to 3 x my salary, whereas I need nearer to 4.

dimbo61

Well you have alot to deal with at the moment with the seperation
You are on a fixed deal ( when does it finish? as you dont want to pay ERC,s )
What does the mortgage revert to at the end of the fix ?
Can you afford to take on the mortgage on your income alone ?
Will your current lender be happy to remove your EX from the mortgage ?
Only you know the answer to the above questions so you need to speak to your current lender and check your current outstanding balance.
Then use the mortgage calculators on the websites of the lenders you are looking at
Good Luck

elliejay_2

We've been separated for a year - I've been paying the mortgage on my own in that time whilst I wait for the fixed term to end to avoid the £6k!! in ERCs (and saving to buy out his share of the equity). It ends in January, and the follow on rate is 4.99%, so not worth staying with them, even though they have agreed to the change to just me in principal.

There shouldn't be a problem getting a mortgage for the balance. Most lender's calculators come out offering more than I need, so providing there are no nasty unknowns, it should be ok.

So the final piece of the puzzle is finding a good rate, hence the posting here asking for opinions. I agree no-one knows my circumstances, but there are some really knowledgeable people on here, who may point me in the right direction.

Thanks for your help!

dimbo61

I would get your EX off the mortgage asap first and then see what deals your current lender can offer you.
A 2 year fix might give you the time to get your LTV below 75% and get you better deals when you remortgage next time