Swapping Mortgages

Big_Cheese_2

As a complete idiot on all things financial, I'd be grateful for any advice on my current position. I have an endowment mortgage which, you'll be shocked to hear, will not pay out anything like what is required. Is there any way I can remortgage on a repayment basis? The mortgage is for £60,000 and the house is worth probably about £180,000.

herbiesjp

Big_cheese you can do exactly what you want to do - should not be any probelms as long as affordability is there.

somemortgageanswers

I agree with Herbiesjp - as long as you can afford it you switch over from endowment to repayment. You need to decide what to do with your endowment mind. You dont need to remortgage to switch either. If you are tied in to your current deal - just contact your current lender and ask them what the repayments would be.

If you dont have a tie in - contact an independent mortgage broker to give you advice and costs on your options

Big_Cheese_2

Thanks for the advice, people. I'll get in touch with my lender today.

lisyloo

hairy_cornflake wrote:

However I can tell you and everyone else, that Alliance and Leicester withdrew that scheme yesterday.

I am keeping my eye on this, but currently a little unsure that someone hasn't made a mistake here.

The mortgage is still available on the website and says "correct as of 18th March" which is after you said they withdrew it.

Incorrect or mistaken information somewhere.

payless

perhaps this helps ( as rec'd in email from A&L on 17/3)

Alliance & Leicester is re-pricing its 2 year fixed rates with effect from close of business on Thursday 17 March. Its 3 year fixed rates are being withdrawn. ALL OTHER CORE PRODUCTS REMAIN UNCHANGED.


http://www.alliance-leicester.co.uk/mortgages/index.asp?page=switcher-rates&ct=2yeardiscount
still lists the product mentioned

lisyloo

Thanks Payless.

The only thing I'm now worried about is that my husband is changing jobs and will have been in his new job only 3 months at the point of switching.

Is this likely to be a problem?
We can arrange (as part of the job offer negotiation) that he's not in a probabtionary period at the point of the switch.

Does having 2 salaries make a difference? (his is the larger).

Thanks

payless

Lisyloo

Probationary period should not be an issue with existing lender- as they will not normally undertake any financial underwriting ( unless increasing the amount borrowed)

Some other lenders would have an issue with probationary period ( if you can't get it dropped), although in many remortgage cases the lenders are very flex if their is a reasonable amount of equity- nad may not even ask the question , or if they do will likely take an individual view on each case.

As you know products change on a regular basis, so would need to compare at time you are actually looking to swap ( say 8 weeks before end of current deal)

hairy_cornflake_2

Hi Lisyloo

Got your messages, sorry not had chance to reply earlier.

Payless is spot on with his note above.

Any further queries, drop me a line

wotnoshoeseh

Suggesting if looking to compare own products - to use one of the comparison sites ( even FSA have one) - then they could transact via that site, direct or even approach broker
(better armed having an informed mind - or possibly even ask for "no advice" - and may obtain rebated commission)

If I sign up for a mortgage having gone on the "no advice" route, is it possible to get rebated commission?

I'm coming off a fixed rate and am about to enter into another fixed rate with Nationwide BS, but knew what I wanted and went on the "no advice" route.

Would be interested to know if I can get a few extra quid from the BS?