Remortgage Help/Advice

burnard5

Hi,

Our Halifax 2 year fixed rate mortgage is due to expire on the 31st of August. Presently we pay £403 per month on a 25 year mortgage of £69000.
After reading Martin's remortgage guide I decided to contact L&C broker. They have just got back to me tonight and recommended I stick with the Halifax on another 2 year fixed rate mortgage. The monthly payments have jumped to £499 per month which seems a lot even with the interest rate rises for a mortgage of approx £66000 over 23 years. Does this seem a good deal? I stated I would like a fixed rate mortage again to L&C but not sure if this is the best way to go as we are thinking of moving next year and will probably increase our mortage to around £100,000. I stressed to L&C that I would need a protable mortgage.
Any advice would be greatly appreciated.

sally06

burnard5 wrote: »

Hi,

Our Halifax 2 year fixed rate mortgage is due to expire on the 31st of August. Presently we pay £403 per month on a 25 year mortgage of £69000.
After reading Martin's remortgage guide I decided to contact L&C broker. They have just got back to me tonight and recommended I stick with the Halifax on another 2 year fixed rate mortgage. The monthly payments have jumped to £499 per month which seems a lot even with the interest rate rises for a mortgage of approx £66000 over 23 years. Does this seem a good deal? I stated I would like a fixed rate mortage again to L&C but not sure if this is the best way to go as we are thinking of moving next year and will probably increase our mortage to around £100,000. I stressed to L&C that I would need a protable mortgage.
Any advice would be greatly appreciated.

We also have a 2 year fixed rate mortgage with the halifax - due to expire on 31/8/07 I popped-in for a chat with a morgage advisor this afternoon and got a bit of a shock when she showed me the best deal she could offer us. Our current rate is 4.99. The best she could offer us is 6.50. What rate did the halifax offer you burnard5?

herbiesjp

At that level of borrowing you are getting pretty close to very fee sensitive, so that means you may get better rates, but the higher fees attached may not make them cost effective for you.

It may be worth looking at other fee free deals out there.

Whilst being portable is a good thing, please remember that, porting a mortgage is treated as if it were a new mortgage - so fully underwritten again. So if your circumstances have changed in the period in which you want to move, you may find that 1) they may not be able to agree the amount of mortgage you have currently 2) they may not be able agree any extra money you may want to borrow.

Bearing that in mind you may want to look at deals that do not have any tie-ins at all, just so you have the extra flexibility/options when you do finally decide to move

HTH

burnard5

Thanks will look in to mortgages with no tie in.

Sally06 not sure of the exact rate of interest but documentation should arrive in the post tonight so will let you know.

burnard5

Interest rate is 6.14%.
Just got the details through from L&C which shows the payments are £447 during the fixed rate deal so not as bad as I thought. The £499 is if we moved on to the variable rate of 7.5%.