Help..cant get remortgage any more ??

sterlingstash

Good advice. A longer term gives you some flexibility - which is what it seems you are after by keeping investments alongside. As long as you are disciplined, you can overpay as if it were a 10 year mortgage.

Edit - the rate shouldn;t be any worse. Check the terms of the mortgage on overpayments. You can often make 10% capital repayment per year within the product period. That would be over £10k overpayment in the first couple of years. If you can manage that, then you'd be going great guns in paying off the mortgage quickly. The only thing you wouldn;t be able to do is dump all of your investments into mortgage overpayment in one year (which you might want to do for example if rates went up a lot)

loady

so..maybe a good idea to go back to yorkshire bank and ask for 25 year term on the rates i saw, making sure i can overpay say 10k PA ??

zzzLazyDaisy

2.75% isn't a bad rate, and interest rates are forecast to stay stable for the next 12 months (although admittedly no-one has a crystal ball). Stay with your current lender and overpay like mad to bring down the balance owing and then look again in 12 months.

To be honest, £30k isn't a huge wage these days, and that's a big mortgage to clear within 10 years. I'm not surprised the banks are questioning your affordability post credit cruch.

HappyMJ

loady wrote: »

so..maybe a good idea to go back to yorkshire bank and ask for 25 year term on the rates i saw, making sure i can overpay say 10k PA ??

Do you mind sharing your money saving tips. To overpay by 10k per year on a salary of 30k which according to the government is not enough to support 6 people so they give you child tax credits on top is amazing....Well done....

loady

yes, the rate is good..but its not BOE rate, its natwest rate..they could just up it for the hell of it and the Yorkshire bank rate is better and its BOE based..i guess even at 2.75 my percentage rate will be going down by nearly 1%..im no mathematician but thats a fair bit of money off of £1196 which is what i am currently paying at 3.60%

loady

HappyMJ wrote: »

Do you mind sharing your money saving tips. To overpay by 10k per year on a salary of 30k which according to the government is not enough to support 6 people so they give you child tax credits on top is amazing....Well done....

off topic...Sure...haggle on EVERYTHING, and i mean EVERYTHING, admittedly i have a well to do mum who has helped us out to the tune of 26,000 over the years but recently we recieved an inheritence and paid her back and basically put us where we should be at this time of life...i guess we are lucky..but i still haggle on everything....anyway..back on topic...

jaysb

is it a repayment mortgage or interest only - when HSBC offered me a daft multiple of 1.2x salary on 30% LTV I went to Nationwide who gave me what I needed.

loady

yes, its repayment.. i have just been back on the phone to yorkshire building soceity and increased the term to 33 years !! this gets me 105k of borrowing...really unsure of increasing the term though and whether i should do it.. this is what i am looking at >>

2.69% variable (BoE Base Rate +2.19%), collared at 2.69%, until 30/06/14, then our Standard Variable Rate, currently 4.99% variable, for the remaining term of your mortgage

It has a £295 product fee

Thrugelmir

Suggest you use some of your inheritance to reduce the amount you need to borrow.

All major lenders are required by the FSA to consider affordability when advancing new mortgages. Otherwise in the event of default by the borrower they will considered responsible.

loady

just got the numbers from my current lender natwest..as of today i owe £122,440 and the term is 10yrs 2mnths...

Guess i am royally screwed to get a better rate at the YBS, if i extend the term to 33 yrs they will lend upto 105k