What am I looking for?

bhindi

A strange heading I know. But please persevere..

I currently have a 4.99% fixed rate deal with nram that expires 2020 and the mortgage will be paid in full. Remaining debt approx £41,000.

I am just entertaining the idea to get another fixed deal.. for 8 years with a slightly lower rate as Nram have removed the early redemption payment fee.

I know I might be expected to pay a setting up fee with a new deal, but hoped with the lower mortgage fix rate, that it will be worth it..

anyhow I digress..... I have been looking at remortgages.. and of course they show a ltv percentage... but if i am looking for 41k.. then that surely is 100%. ?? Really i am just trying to transfer the debt to another company, but I don't understand this market..

Also if anyone knows of a nice 8 yr fx rate deal available. most preferably one that allows overpayments, without enforcing an adjusted monthly repayment after overpayments.. all the better.

Sorry if i have been long winded.

N.p house value possibly £185,000

Regards,
Claire

Morgage_Confused

ltv is loan to house value....

your ltv is probably not 100%.

get out of nram svr and go for a tracker at something like 2.5% and overpay on such a small mortgage.


i think its hsbc that have a totally fee free deal at present for a tracker. base plus 1.99%

Joe_Bloggs

The V in LTV is how much your lender thinks your house is worth. If they think it is worth 100K then your LTV would be 41%. If they think it is worth 82K then the LTV would be 50%.
J_B.

dimbo61

You have a very low LTV if your home is worth £185,000 and you only owe £41,000 but you need to look carefully at all the remortgage costs !!
exit fee from NR plus Early Repayment Charges, set up fee with the new lender and searches, surveys, legals ETC.
You might be better off just overpaying your current mortgage ( read the paperwork carefully) and check if the ERC decreases over time
Chck if you can pay off say 10% extra each year
GOOD LUCK

bhindi

Thanks for the posts..

Right looking at the hsbc deal.. it appears that for £41k for 8 years I would be paying £471 per month.

Currently my repayment is £522.50 so that's a saving of £51.50 a month... x 12 months is £618.00 a year, so over 8 years thats a saving of £4944. which is a tidy sum!!!..

I am a big fan of fixed rates, so I need to seriously think this through.

I do make overpayments regularly, and was on target to pay the mortgage of in 4 years, but a redundancy is threatening, but this could also put the scuppers on transfering the mortgage at all.. depends how quickly I can do it.

wish life was a little easy at times!