So annoyed at myself for not making overpayments :-(

rainbowcloudy

Beckyy wrote: »

I wouldn't bother changing around the repayment options on your current mortgage, just remortgage asap. You could almost half the daily interest youre paying so it's worth doing it literally now.

Personally I like to OP and leave my term the same so that if I ever lost my job or something terible happened I'm not committed to having to pay so much per month. Everybody is different though.

How much equity do you currently have in your house, or how much is it worth? This will be the main factor on what interest rate you can get.

I think you may still get some fees if you remortgaged with Barclays, definitely get confirmation as you wont be rewarded for your loyalty!

They said i could do a rate switch as im an existing customer and apparently its not the same as remortgaging as they wont need to do a valuation or anything as the property is alreasy with them. I do wonder if im getting the right info from them though because they give conflicting facts sometimes its very annoying.

edinburgher

OP, you are an *ideal* candidate for a fee-free whole of market mortgage broker.

You know what you want to do (i.e. reduce your term and make use of savings to get a smaller mortgage), you're obviously in stable employment as you have no concerns about getting a new mortgage, but you really don't know how to get there. That's not a catty comment, but you seem like you appreciate advice from others?

A fee-free whole of market mortgage broker can listen to all of your preferences, search the market for suitable products, make a recommendation on what will suit you best according to your specific needs and do a little bit of hand holding until the mortgage is agreed.

Things to consider:

• Fixed or tracker/variable - remember that the longer you borrow money for/fix, the higher the premium/rate you will pay to the lender. How much is the security worth to you?
• Term
• Whether or not you're willing to pay product fees - your mortgage isn't that big - I wouldn't be considering anything with product fees higher than a token sum in your shoes
• OPs - i.e. 10% per year or unlimited

They are paid a fee by the lender for recommending their product to you, but they are obliged to base their recommendations based on the benefit to you as a customer, not whoever gives them the most money for pushing their product! They will always explain why they have recommended a product, referencing the criteria you give them at the start of the process.

I recommend London and Country (for no reason other than we've used them twice to great success). They sponsor the mortgage guides on MSE and you can do almost everything by phone/email.

This board is great for running possible solutions past other people who will do their best to help, but finding a mortgage is an area where it's well worth seeking advice from someone who does it for a living!

Beckyy

I don't see how their could be an ERC charge for reducing your term, as you're not repaying your mortgage early. There may be an admin fee but she should have told you if there was.

Some people would rather OP than reduce the term if they don't want ot commit to a higher amount each month or don't have the job security to commit to it. If it suits you then it's no problem at all.

Personally though, I would shop round because you might get a better deal than the one barclays have offered you - even if you have to pay fees. You'll get no thanks for staying with them, so only do it if it's genuienly the best option for you.

Have a nosey at this to get an idea of of some of the other rates for remortgae products. Note the max LTV (loan to value of your house) as some will only be available if you have a certain amount of equity. http://www.money.co.uk/mortgages/remortgages.htm

rainbowcloudy

Thank you for the link, ive had a look but cant see anything with a LTV of below 60%. Mine will be roughly 35% so.im.assuming i could get better rate. Cant find any though as most sites are 60%.
I decided to cancel reducing my term as when i just phoned back to confirm no charges he told me that if i want to increase it in the future its not as simple as the ladt person told me :-/

rainbowcloudy

edinburgher wrote: »

OP, you are an *ideal* candidate for a fee-free whole of market mortgage broker.

You know what you want to do (i.e. reduce your term and make use of savings to get a smaller mortgage), you're obviously in stable employment as you have no concerns about getting a new mortgage, but you really don't know how to get there. That's not a catty comment, but you seem like you appreciate advice from others?

A fee-free whole of market mortgage broker can listen to all of your preferences, search the market for suitable products, make a recommendation on what will suit you best according to your specific needs and do a little bit of hand holding until the mortgage is agreed.

Things to consider:

• Fixed or tracker/variable - remember that the longer you borrow money for/fix, the higher the premium/rate you will pay to the lender. How much is the security worth to you?
• Term
• Whether or not you're willing to pay product fees - your mortgage isn't that big - I wouldn't be considering anything with product fees higher than a token sum in your shoes
• OPs - i.e. 10% per year or unlimited

They are paid a fee by the lender for recommending their product to you, but they are obliged to base their recommendations based on the benefit to you as a customer, not whoever gives them the most money for pushing their product! They will always explain why they have recommended a product, referencing the criteria you give them at the start of the process.

I recommend London and Country (for no reason other than we've used them twice to great success). They sponsor the mortgage guides on MSE and you can do almost everything by phone/email.

This board is great for running possible solutions past other people who will do their best to help, but finding a mortgage is an area where it's well worth seeking advice from someone who does it for a living!

No thats ok it wasnt a catty comment at all, you are right i know what i want but dont know how to get there. Im the first to admit this mortgage business confuses me. It also doesnt help when i call up my mortgage company and firstly i cant undetstand their foreign accents but they also give me conflicting information. I do really appreciate the advice on here and ive learnt more in 2 days on here about mortgages than i have in the last 6 years!
Thanks for the info in your post. Im reluctant with a tracker or flexible thingy as would prefer a fixed rate for peace of mind. Ive also been stuck in a high 5.49% whilst rates were low so now if i can i want a lower rate fixed for 5 years so if rates go up as people keep talking about then i wont be affected.
I agree about the product fee, ive been offered one fee free at 2.99% fixed for 5 years. I dont think a fee would be beneficial for me for a cheaper rate.
I would like to make over payments of more than 10% a year but im not sure if ots worth me not fixing :-\
I will look into the broker thing. Can i fill in forms with a broker online for them to give me what they have to offer or do i have to book an appointment etc.
Thanks for the advice :-)

gjchester

rainbowcloudy wrote: »

I think i read it right i typed in my original mortgage of 950000 then the rate and if i overpaid 600 a month. The graph at the bottom was at about 22000 left to pay in the 6th year.

It would make me feel better if i had read it wrong.

I may have misunderstand what you canculated, You said it was £120K originally not 95k. Just seems a lot in a short time even considering compound interest.

You may also have had fee's to consider, we can only overpay a max of £499 in any one month before getting a fee, except in January when its any amount up to the 10%.


However Your going in the right direction now, and Good Luck. We're working to 5 years to be MF.

Happy to be wrong, I just think you've over simplified it somewhere and over estimated the saving.

edinburgher

The easiest thing is to gather your thoughts (and paperwork - i.e. current mortgage details, what you want, address, salary and expense details) and to submit an enquiry on their website. They'll call you at your convenience (well, within reason )

Best of luck.

rainbowcloudy

Just a quick question. Say if you take out a mortgage of 50000 from 1st april and you are allowed OP of up to 10% a year. Could i make an OP of the whole 10% (so £5000) on the 2nd april or soon after. Obviously as i understand it that would be my only allowed OP until the following April but im wondering if there are rules as to the 10% being allowed over the course of the year so pro-rata it or is it the case of it being anytime as long as its April to April?
Hope ive worded that right.

gjchester

rainbowcloudy wrote: »

I will look into the broker thing. Can i fill in forms with a broker online for them to give me what they have to offer or do i have to book an appointment etc.

Bear in mind other fee's. We've just remortgaged, when we added up the booking fee and Early exit fees for a market leading rate it was actually cheaper to stay with Santander on a slightly worse rate but with lower booking fee's.

Theres a excel sheet by LoCost Fireblade
http://locostfireblade.co.uk/spreadsheet/Index.html that has its own thread on here that may help you calciulate costs overall.

rainbowcloudy

Thank you i will bear that in mind. Thanks for your help.