re-mortgage advice

iwmorg

Hi all

Would appreciate some pro advice please?

I have 4 years remaining of a 10 year fixed mortgage with YBS which costs £359 per month (20 years remaining overall)

Current redemption cost including ERC etc is about £55000.

I could shift that onto a Tesco mortgage for a 5 year fix @ 3.19% (£195 fee max 70%LTV) which would bring the monthly payment down to £310 allowing me to make some hefty overpayments.

My question is whether I'm likely to be accepted by Tesco?

House was last valued at £85k a couple of years ago - don't think prices have changes a huge amount since then - Loan required is £55k.

My salary last financial year was about £31.5k, about 10% of which was overtime/bonus. I've just had a £2k payrise. I have no loans or CC debt (I have a small balance on one CC which I pay off in full monthly). I have 4 active credit cards however with total credit available of about £20k.

I have no adverse financial history, on electoral roll etc. I'm married - but house and mortgage are in my name only - wife is in last year of degree studies.

I've checked Noddle and have a 5/5 credit rating with them.

Am I likely to meet tesco's lending criteria? Should I cancel a couple of the credit cards before applying to free up some credit? Would I be better off going through a broker (L&C?) or are there any better deals than than this Tesco one which I may have missed?

Thanks :-)

ACG

Have you done the sums?

You would be moving to be £49 per month better off. Lets presume you have the full 48 months left, that totals £2304, take away the £195 fee and it comes to £2109 - you will then also have to pay ERC's, how much are those charges?

I cant comment on tescos criteria as they only deal direct (not through brokers) which means you would not be able to go through L&C, you would have to do it yourself. As far as affordability goes though, i think you will be fine.

iwmorg

Thanks for your reply - the figures above include all charges for exiting the current mortgage.

ACG

But you dont say how much the charges are... if the mortgage was £40k and the fees were £15k you would be making a massive mistake. If the mortgage is £54,500 and the charges are £500 then it might be worth looking at.

iwmorg

Thanks, but I've done my sums and wasn't after advice on that aspect. Based on making overpayments to make the total monthly payment £450 on both the current mortgage and the Tesco one, the mortgage balance in 5 years time on the Tesco one would be much lower than the current YBS one.

Any further comments on the questions asked in the first post would be most welcome.