Mortgage Advice Please

Aberdeen_Taff

Hi there,

I am now clear of my fixed rate deal and am looking to remortgage over 19 years. The house is in Aberdeen, is valued about 380k and 173k is outstanding. I earn about 47k and my wife about 26k. We have one loan of 7k.

Anyone got any idea of the best deals going?

Cheers.

kingstreet

Fixed? Tracker?

Term? 2? 3? 5?

Fee or no fee?

Free valuation and legals, or keenest rate possible?

Aberdeen_Taff

Thanks for your reply - i am willing to look at any length but 3 would be preferable. I would prefer a standard repayment but, again, am willing to try other options if there is a better rate out there.

In a perfect wold, no or low fees and the lowest overall cost over the 3 years would be what I would be looking closest at.

R_P_W

Aberdeen_Taff wrote: »

Hi there,

I am now clear of my fixed rate deal and am looking to remortgage over 19 years. The house is in Aberdeen, is valued about 380k and 173k is outstanding. I earn about 47k and my wife about 26k. We have one loan of 7k.

Anyone got any idea of the best deals going?

Cheers.

Lazy much?

bigadaj

R_P_W wrote: »

Lazy much?

Answer for OP is a broker, going DIY is fine if people are prepared to spend a bit of effort and have a good position but this is obviously not the case here.

kingstreet

I agree. I've been out all day seeing clients down in the sarf of Brum and I'd say the OP needs a broker. You don't just pick something because it looks cheaper than something else.

If we all did that, there would only be two year fixed rates and nothing else as they tend to have the lowest rates.

A good whole market broker will establish whether you should be tracking or fixing, whether it's worth paying up front costs to get a lower rate and the term of the mortgage which would suit you best.

He will also consider any overpayments you might wish to make, any penalties involved in doing so and how the "follow-on" rates compare from one lender to another.

Aberdeen_Taff

R_P_W wrote: »

Lazy much?

Fair point. Apologies for appearing lazy as I do look like someone unable to work a simple mortgage calculator!

My main issue is that I would like my mortgage over 19-20 years and would prefer it fixed for 2 or 3 years so I know what's going out. We have just finished an extension so are moving off an interest only fixed rate which suited at the time as we were having a number of other house improvements done and needed flexibility.

I much prefer to know exactly what's coming and going financially each month as the amount of overtime I earn varies greatly so am comfortable with a fixed rate. Many of the better deals appear to have 4 figure arrangement fees and I am struggling to see if I am better off paying that (I would have to add to loan amount) or whether I would be better off paying a bit more per month. Would this make the outstanding loan amount less (given there would be no or low arrangement fee)?

Any advice appreciated.

Aberdeen_Taff

I am currently with Clydesdale who are offering a 2 year fixed at 2.49 with £500 fee or 2 year fixed at 1.99 with £1999 fee.

This would be monthly fees of 891 or 926 respectively (I think) but I am lost as to what I would end up owing at the end of these periods. I am looking at adding the arrangement fees onto each deal.

kingstreet

Depending on how much you need to borrow, paying a fee pay be a good idea, if you are borrowing enough over a long enough period for it to be worthwhile.

A smaller mortgage over a short term may mean paying fees is a false economy.

You really need a broker, otherwise you are going to have different options coming out of your ears...

Aberdeen_Taff

Thanks for your advice. L&C are calling back tomorrow with their findings so hopefully good news there. I don't think they are whole of market though?

nicolula87

Easy maths for the two options you have given:

The lower interest rate gives you payments of £891 per month, and the higher interest rate gives you payments of £926. The difference between these is £35 a month which over two years comes to £840. So the higher interest would cost you £840 more in payments but would save you £1500 in fees therefore costing you £660 less over the two year fix.

Hope that makes sense