re mortgage advice

motor_bike

hi,

new to the forums but have been using the mse site to save
money .

i need to re mortgage to buy out my partner ( mortgage is in my name only) . i have a mortgage with the halifax. i paid off the mortgage last july but left a pound on so as not to incur an early re payment fee of around £500. the mortgage target date was august 2014. i was told when i paid the mortgage off last july that if i needed any more money i could borrow up to 22k at the rate i last fixed it at (below 4%, i think). so when i went to see if could still borrow the 22k i was told that because i still had a mortgage with the halifax that i would have to go onto another rate, 6%. now just been looking at the online re mortgage deals with the halifax and there looks to be at least 4 that would suit me , all at less than 4%. so would i be best off paying the early re payment fee and then start again with another lender if cheaper or better deal exsists. just thought it would save some fees etc if i was an exsisting customer.

just to add to the mix, i am am a director of a small company which i own. so i would be classed as self employed ?. would this have any affect on lending ? . what are your thoughts cheers motor bike

kingstreet

You don't remortgage with your existing lender, so looking at Halifax remortgage products is a waste of time. They are for borrowers moving their mortgage from another lender to Halifax.

You need to look at product transfer rates, if you have a balance on your mortgage, or further borrowing rates if you don''t.

In these circumstances, you may be better off remortgaging to a new lender as you would benefit from their offers designed to entice new customers. They often offer a free valuation and free legals, so the transfer costs can be paid for you. Avoid products with arrangement fees if borrowing a relatively small amount.

It may still be worth going the Halifax further borrowing route if you would have an early repayment penalty to pay. Take the borrowing now, then remortgage elsewhere when the penalty period ends.

Directors and the self employed will normally be expected to provide two or three years' accounts or SA302s for the same period.

motor_bike

thanks for the info and yes i was asked for a p60 or an sa302s i canot provide either at the moment as its my year end but it i will have them soon. i will need to borrow 40k . would it be worth using a broker or the one recomended by the mse that searches 90% of leanders for the best deal if i dont think the halifax is doing the best deal for me. i am guesing that they base the lending on income aswell as property value. its been a long time since i first took out a mortgage and thing change. can anyone recomend a lender or a good deal that would suit me. cheers

kingstreet

By all means talk to a broker and carry out your own research into lenders who only take business directly from the borrower.

Yes, income is as important as loan to value.

Don't worry about the current year. As long as you have evidence of income for two or three earlier years which is sufficient, you should be fine, if you have bank statements for the current period.

motor_bike

sory, forgot to add that i only just have 2 years accounts as i took over my dads company whe he died.

also been to the halifax to sort the exsisting mortgage with a pound left on as they keep charging me for payment protection and charging me interest on the origional loan amount and then crediting it back to me.

anyway asked them today regaurding borrowing on the current mortgage (at 1.990%)and as kingstreet said its not re mortgaging so i canot use that deal. i said to the advisor that i had been shopping around and found a deal to switch the mortgage i have from halifax to the co op, no fees and valuation done free for less than 3% provided i open a current account and put a £1000 through that a month and my 2 years accounts are acceptable. the advisor said we cant match that or get near it with any of our products so it would be better to go to the co op so it looks like i can avoid the early repayment to the halifax of £470 and get the loan i need with no fees at less than 3% . will of course check other deals out and try and compare them to see whats what .

will update as and when

motor_bike

right , i am now ready to start shopping around for a new mortgage. i need to borrow 33k, any good deals that i should be looking at ? . cheers