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Re-mortgage advice please.
davemorton
Posts: 29,084 Forumite
I realise that any advice I receive on an open forum should always be checked out, but as far as mortgages are concerned, I am utterly clueless.
I am currently on a fixed deal at 5.99%, with up to 6 years left on the fix. I can get out of it with no penalty in 11 months time, or can get out now with a fee of £1290.
Amount owed is £140k, property value is between 170-180k (need to get a local EA out for a valuation, as dont have a clue how property prices have been affected in the last 4 years since buying the property.)
Would it be financially beneficial to switch now, and pay the early penalty, or wait 11 months and change then (or option C, not move it at all).
Any suggestions welcome. :beer:
I am currently on a fixed deal at 5.99%, with up to 6 years left on the fix. I can get out of it with no penalty in 11 months time, or can get out now with a fee of £1290.
Amount owed is £140k, property value is between 170-180k (need to get a local EA out for a valuation, as dont have a clue how property prices have been affected in the last 4 years since buying the property.)
Would it be financially beneficial to switch now, and pay the early penalty, or wait 11 months and change then (or option C, not move it at all).
Any suggestions welcome. :beer:
“Quis custodiet ipsos custodes?”
Juvenal, The Sixteen Satires
Juvenal, The Sixteen Satires
0
Comments
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What other deals can you get ?
This depends on LTV, income, credit history etc
Moving mortgage in 11 months may well be better when no ERC0 -
Chances are you wont save £1000 between now and november/december time.
You would probably be best waiting then reviewing but thats based on what you have said, we would need LTV and to look at what deals are available for sure.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Many thanks for replies. How would I work out my LTV. Is that just the mortgage amount (140K) compared to the value of the property (170-180k)?“Quis custodiet ipsos custodes?”
Juvenal, The Sixteen Satires0 -
yup, exactly.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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If your property is worth £180K and you owe £140K then you have a LTV of about 80% can you afford to overpay each month ?
Any overpayment you make now will save 5.99% TAX FREE! and may just get your LTV down to 75% by december.
Better LTV would help when you look to remortgage0 -
Cant really manage overpayments, but I can get the amount that I owe down to £130k as was going to use the other 10k to consolidate, but its not essential. The only think that made me re-mortgage now was seeing rates or 3-4% on the site, and thinking at such a rate, I would save more than the buy-out fee. Again, thanks so much to everyone that has replied and helped.“Quis custodiet ipsos custodes?”
Juvenal, The Sixteen Satires0 -
Consolidate debt?0
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ces up, but its not essential.Thrugelmir wrote: »Consolidate debt?
Yep, just get everything paid off to tidy my finances up, but its not essential.“Quis custodiet ipsos custodes?”
Juvenal, The Sixteen Satires0 -
davemorton wrote: »ces up, but its not essential.
Yep, just get everything paid off to tidy my finances up, but its not essential.
Unsecured debt may well impact on a lenders decision.0 -
Do you mean things like car loan etc? So when coming to re-mortgage, would I be better off trying to consolidate these, or just keep them separate??“Quis custodiet ipsos custodes?”
Juvenal, The Sixteen Satires0
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