New mortgage deal

hulahoop09

Hiya

Our fixed rate with halifax ends in april and they have said we can call to see what is available to us at that point. When we took out mortgage value was 110k and we took out mortgage for 80k over 25 years (ending when I am 50). We had a few months mortgage holiday for wedding/maternity/new baby and currently pay £527 per month (5.79%). Halifax current svr is 3.99%.

Houses like ours in our street now arent even selling for 85k atm. Our payments in april will possibly drop to approx £460 pm. I spoke to halifax who said there are new deals available to us with no product fee but obviously have to wait til first week in april to see what is available then. They have told me current LTV is 87.10% - what does this value our house at is it possible to know?

If were changing now there is another 5 year fixed rate available at a slightly higher rate but gives us security of being fixed for 5 years. My question is if we wanted to extend mortgage by 5 years so instead of paying by time I was 50 I would be 55 instead do they re-credit check for any customer switching to a new mortgage deal? I work less hours atm due to having a baby so income is less than previously (only small amount). Also I dont have a great credit history - I am healing it and did manage to get passed for a mortgage. never missed or made a late payment etc. So do we have to go through the whole credit checking, paperwork process again if switching to new deal and possibly asking to add 5 more years on? Come end of April it is likely we will have to pay the dreaded childcare costs and will have less than £100 per month left as it stands so having a fixed rate and at a bit of a lower payment than what we are currently paying would really help! (possiblity of axing 5 years off in the future when finances are better also)

Thanks!

Thrugelmir

Opting for a new product is not an issue.

An amendment to terms such as term extension would require underwriting.

If you have debt issues. Then perhaps better to drop onto SVR if less than fixed rate offering. Use the saving to tackle your most expensive debt.

hulahoop09

We would be saving about £70 but this would be taken up by childcare. We will have less than £100 a month left at the end of april after all bills and childcare. This will be needed for nappies and clothing for my little girl and any emergency circumstances and dentist etc. If we didnt have to pay childcare we would be in a better situation but we may be forced to fork out approx £350 pm for childcare if our current childcare (grandparent) is otherwise engaged which is very likely. Lol.

My debt issues are from years and years ago and I saw a financial advisor who contacted who I owed money to and they froze any charges and accepted a small payment per month (some never bothered to reply) and so I am paying this off in with our 'bills' each month. Will take me over 100 years (most expensive debt is approx 7k - lloyds tsbs loan & overdraft with charges etc) to pay apparantly BUT I am not in a position to pay anymore and it never affected e getting my mortgage fortunately. As one of the smaller ones are paid I roll over to tge next smaller one as interest isnt being accrued on any and doing it this way over the years I have got some of the smaller paid off over the years so it wont take 100 yrs! Lol. I am gonna try in few years time when finances are hopefully better to pay a bit more off. We havent been too lucky in that our house has needed bits n oieces repairing and we dont have central heating but storage heaters and so the winter months cost to keep us warm but we end up freezing. I also have had a baby etc so just trying to enjoy life.

Our current rate is 5.79% and it will drop down to 3.99% end of april which as I said will make us a saving of approx £70 (if the svr stays the same). I just worry if it shoots back up over what we were paying previously 5.79% which is why I considered getting a fixed rate (approx 4.43%) but if us extending by 5 years will include further checks it is probably best we dont risk it incase halifax get rid of us altogether! Lol.

Thanks for the reply!

smes9

I would go onto the variable of 3.99 for now as you would save more money. Keep up to date with whats happening with interest rates and as soon as you think they will rise, go and get the fixed rate. You will probably have saved more money the time you were on the lower rate. I would say just try to grin and bare it as you will pay a shed load more in interest over 5 extra years if you extend your mortgage.
See if there is anything else you can cut down on.
(im not an expert this is just my opinion)
Hope it helps and good luck!

Thrugelmir

hulahoop09 wrote: »

My debt issues are from years and years ago and I saw a financial advisor who contacted who I owed money to and they froze any charges and accepted a small payment per month (some never bothered to reply) and so I am paying this off in with our 'bills' each month. Will take me over 100 years (most expensive debt is approx 7k - lloyds tsbs loan & overdraft with charges etc) to pay apparantly BUT I am not in a position to pay anymore and it never affected e getting my mortgage fortunately.

Scuppers you now.

kingstreet

smes9 wrote: »

I would go onto the variable of 3.99 for now as you would save more money. Keep up to date with whats happening with interest rates and as soon as you think they will rise, go and get the fixed rate

Although, the market will already have anticipated any rate rise and the fixed rates available at that time will, as a consequence, be higher than they are now.