Need a new deal

DaveHemmerman

Hi the wife and i are due to remortgage in May and i am starting to look at diffferent deals.

At present we have 21 years left (in may) and have been with Nationwide BS for the last 4 years. We are on a flexible mortagage which is £406 p/m and currently owe around 60500.

We bring in a total of £35-£40K pa depending on how much overtime i get at work. We are happy paying this but would obviously like to pay it off a bit quicker but dont want to commit ourselves too much (well i would but wife not to happy). Im 26 and she is 35 so i would ideally like it paid off before she is 50.

Which deal is best though overall not to bothered if it goes a up little as we can offered more but its nice to know we can overpay etc if we want.

Ive used Moneysupermarket.com to do a comparison and ING Direct £9,906 true figure Standard mortgage type @ 5.2% Typical and 5.14% Term £412.77 over 2 years is this good? I really dont have clue. Its only £6 more but over 19 years so 2 years less than now!

Basically
£60500 left over 21 years at present with £406 repayments and house is worth around £130k.

Can someone please give me a bit of advise what i should be looking at and comparing.

Thank you very much.

Dave

firesidemaid

as well as the interest rate/monthly payments you also have to add in the the cost (if any) of mortgage arrangement fees, legal fees and valuation fees.

if you leave your current provider you may also have to pay (a now) small exit fee. these all have to be calculated into the length of the deal.

also, do you like others feel the rates may rise and would rather have the safety of a fixed deal or not.

depending on how disciplined you are about overpaying, you could consider an offset mortgage (?do you also have any savings).

you could also reduce the term of your mortgage to increase your overpayments to a level you are happy with, and choose to overpay more when you can.

start also with your current provider to see what deals they can offer to keep you!

DaveHemmerman

Hi thanks for your information it all helps,

My wife has around 2k in an ISA with Nationwide, but we have nealry finished off redecorating the whole house so most of our money went on that plus we got married last year! We have 2 current accounts one which has the DD & SO coming out of which is about £900 p/m and thats all our out goings on bills and the like, the other account is just for spends ie fuel, shopping etc etc which our wages go into and that usually runs a credit around £1000 or so. Wife is paid monthly but i am weekly so it never drops below £700 usually unless there is big expense.

Now i would be happy to pay an extra £100 or so a month but she doesnt want to commit not regularly so thats why i was thinking flexible mortgage. Nationwide BS dont seem to have many good deals at the min (might be wrong). I was looking at ING Direct as they dont charge a massive fee. Not sure about the leaving charge from Nationwide as we are at the end of our 2 year deal and will just be put on their standard expensive rate in may.

MortgageMamma

Sounds liek a flexible mortgage is what you need, bt if you only need to overpay £500 a month it could be viable to stay with Nationwide. They have a fee's free remortgage at the moment which means you would not suffer a closing admin fee, nor an arrangement fee on the new loan, and Nationwide allow overpayments of £500 per month. If you want to compare other deals you should use a broker, but if you are not going to do that I have an a4 sheet which lists the factors you should be comparing whether deciding to switch or not to switch - let me know if you want it

DaveHemmerman

Hi MortgageMamma!! If you could send me the sheet that would be grate do i have to input different fees, rates etc?

I would like to start by paying £100 extra on our mortgage as this would reduce the time and interest massively and it wouldnt hurt to much a month but if we wanted to stop to save up quicker to go on holiday then the flexibility would be there. We are far from been skint but we can do pretty much what we want whenever, suppose like they say 'you cant have your cake and eat it' think we will just have a smaller cake then!!

The comparison sites like moneysupermarket are good but i get confused with all the different figure it throughs up.