Tm's MFW ramblings

gallygirl

The five year fix sounds very appealing to me but what are the redemption charges?

turtlemoose

Yr 1 - 5%, Yr 2- 4%, Yr 3 - 3%, Yr 4 - 2%, Yr 5 - 1%. Can OP 10% a year. £90 "admin fee" on redemption of the mortgage at any time.

turtlemoose

Ooh I fibbed, 5 year fix is 2.59% with £345 fee plus £130 application fee. The more I look at it the better it seems.

edinburgher

Congratulations on your newfound Missushood

Until very recently, I would have suggested going for the lowest total cost (i.e. 2 year fix). Now that we're actually trying to remortgage while Mrs E is on maternity leave, however, I finally realise the value of a 5 year fix. It's not security of knowing what your payments will be, but more the fact that the bank will leave you to your own devices for 5 years, no matter how many children you decide to try for! :rotfl:

turtlemoose

It does sound daft doesn't it, to take a higher interest rate when a lower one is available, however the length of time really is good, and Ed is spot on about the bank leaving you alone.

If I got upduffed tomorrow, a 2 year fix would end at a reaaaalllly bad time for remortgaging for me. And what if my employer said "sorry there's no job for you to come back to" or similar (wouldn't put it past them) - then I'd probably struggle to get a new deal AND rates would most likely be higher. And so on. A 3 year would be better, timing wise. A 5 year gives us a big window of opportunity to do whatever suits us as a family.

I suppose it's a little like a monthly fee (over and above the lower rate) in order to secure the longevity of the security of the 5yr fix.

edinburgher

Upduffed - brilliant!

turtlemoose

Saw my mortgage advisor for my residential mortgage, or rather, saw his replacement (original has been promoted). Feel a bit sad as been seeing the same one for 8 years. Silly really! Anyway, he could not beat the 5 year fix I like with Y'rkshire BS so I'm going to apply directly. The best he could do was £150 more over the 5 years...ok not loads but still, that's my £150 and I'd rather keep it... I could OP that

The BTL remortgage is dragging on, the lender's legal team are a mess. I had to send them the tenancy agreement 3 times, they quibbled over the option agreement (I bought from a HA, so have 21 year restriction in deeds that they must be offered first refusal for sale, however that HA was bought out by another HA who have written to me to confirm they'll never want to buy it), then they quibbled over the (very small) flying freehold and were dithering about mehaving to buy an indemnity policy (even though no lender has ever even mentioned this before).... in the end they've said it is fine, just waiting for a completion date now....except they've taken so long that my redemption certificate has expired so now I have to wait for them to request a new one, and for my lender to send one, and for them to check it, and then set a completion date.... ARGH JUST DO IT ALREADY!!!!

It's frustrating because I need to wait for the BTL to go through before I can do the residential application. I'm not very patient

It's payday so time for the money shuffle..... :T:T:j:j:D:D

edinburgher

What is a flying freehold? I suspect that it's nowhere near as much fun as it sounds :rotfl:

turtlemoose

It's an end terrace house, a little bit (about 40cm!) of my upstairs is over the top of next door's downstairs. They have a creeping freehold (on the bottom) and I have the flying freehold (on the top). Usually it's only a problem if it's a big one, little ones like this are very common in terraces so it's annoying they flagged it as an issue. You get them a lot in terraces, quite often one house owns an alleyway and the house next door has the part of the building above it, or like mine, there's overlap with upstairs/downstairs rooms.

turtlemoose

Debt balance: £3960.52

This is 48.47% paid off, behind target (54.17%). Lagging behind due to wedding overspend.

(When I say paid off, I mean the money to pay it is sitting earning interest in my S123 account while the debt is interest free.)

Mortgage 2: £98122.62 - but this is 'day 1 of the month' figures, so around £400 in interest will be added this month :eek: Lender revalued the property, increased from £114k to £131k so now at 74.5% LTV :j

Mortgage 1: £48269 - but changing imminently of course, new lender valued at £85K so once remortgage goes through it will be 61k balance and 71.76% LTV


Daily interest:
Debt: ZERO
M1: £2.38
M2: £13.15
TOTAL: £15.53