Can/should I remortgage away from Accord?

Charlton_King

I am looking a fair distance ahead (end of year) but want to start my thinking early on this one.

I am currently on my third successive product with Accord, a 2 year fix at 3.49%. I have had to stay with them before as unable to prove adequate income but have been slowly paying down the capital amount outstanding such that I shall owe c£85k on my property which is currently valued at c£300k.

At the moment they are offering 2 year fixes at around the same 3.49% rate to existing borrowers.

Between us, my wife and I can 'prove' pension income via P60s of around £12500pa and we also, under self-assessment, declare self-employment of c£4000pa (gross) and property income of c£22000pa (gross).

Our credit history is unblemished.

My question is as to whether another lender would consider us and also whether it is worth our while remortgaging away from Accord - their customer service has been top notch and any move would presumably mean product fees from the new lender as opposed to a costless and seamless transition.

Any thoughts from brokers particularly welcome and would be happy to supply any further details as required.

Crashandburn

They are still coming up in the top 10% of deals at the moment and with your income made up from different sources, it may be best the devil you know.

Always just worth a look 2-3 months before the expiry date but you may only be 0.2-0.3% out on better rates with a lot more hassle. On an £85k deal, I'd probably stay put if they remain competitive.

Charlton_King

Any other comments please?

Wh05apk

I suspect a bigger issue here, may now be your ages, how old are you?

There will probably be better deals elsewhere, however, again income will be an issue with most lenders, you state property income £22,000 gross, is that before mortgages and costs or just tax?

Charlton_King

We are 62 and 58.

Our mortgage is secured against our own house, not the rented property. The income is gross in the sense that this figure represents the total rental income which is more or less steady year on year - whereas the allowable expenses we claim can vary widely depending on what happens in any given year.

Wh05apk wrote: »

I suspect a bigger issue here, may now be your ages, how old are you?

There will probably be better deals elsewhere, however, again income will be an issue with most lenders, you state property income £22,000 gross, is that before mortgages and costs or just tax?

Thrugelmir

Is the investment property mortgaged?

Is it multiple units ?

Wh05apk

Thrugelmir wrote: »

Is the investment property mortgaged?

Is it multiple units ?

No, read their reply.

The relevance of multiple units?

Some lenders will accept the rental income as income so you may be able to remortgage elsewhere, you may find it easier to do on an interest only basis, as most lenders will look at affordability till 70, making it unaffordable.

Otherwise see what Accord will offer you.

Charlton_King

We are on interest only and have always been so. We prefer to pay off the capital by lump sums as and when this is possible. This is the situation we are looking to continue with.

We would simply like to know, given our circumstances as described, whether there is any mileage in looking elsewhere... by which of course we mean whether we would come out of somebody else's 2 year fix in a better position financially than if we had stuck with Accord.

Of course, it is also possible that nobody else would consider us, so I've made that part of the query, too.

Wh05apk

Interest only is generally frowned upon by lenders now and is difficult to get, particularly for short term mortgages as lenders work affordability as if a repayment mortgage, it may be worth looking at Abbey, you would appear to fit their criteria, and they tend to have some good deals with no fees.

Charlton_King

Wh05apk wrote: »

Interest only is generally frowned upon by lenders now and is difficult to get, particularly for short term mortgages as lenders work affordability as if a repayment mortgage, it may be worth looking at Abbey, you would appear to fit their criteria, and they tend to have some good deals with no fees.

Thank you very much for that. I was with them once in the past and shall give them a buzz.

Any other comments gratefully received.