Mortage deal expired Help Me Please :)

Angryhalfling

Hello good people

I just found out my mortgage deal is due to expire end of this month.

I owe £16,000 on mortgage, it was for 7 years 8 months remaining at 2.49% fixed rate.

1. If i want anything other than the standard variable rate which I think is 4% with current provider I have to increase my mortage by £9000 to £25000 as this is there minimum amount all their fixed and I think tracker stuff to (scrubs)

Whilst I'm not getting any younger £8000 is a bit of an overkill.

My annual income is currently around £20000 and I live alone with no significant debts.

I would perhaps like to take £2-3000 out for spending money, though its my understanding when I leave my current provider costs can be as much as £1400+

Ill name my provider here if I can and its not against the rules, if you could give me a heads on competitive rates with ethical providers if theres such a thing that would be great.

I just feel as if im been penalised by current provider for not getting greedy and going silly during the boom years getting myself a silly sized mortagage for the fun of it.

Any help really, really appreciated.

An anxious halfling.

lee111s

I'm sure there are lenders out there who will be able to accomodate your needs. Have you searched on google for something like low value mortgage lenders?

Angryhalfling

Yes and its just a complete maze which is why I've come here

When one looks good its certainly not when you start getting into the nitty gritty so I'm hoping there are some experts on here keep to help us lesser mortals out.

anniec19

Have your lender confirmed you need to up your mortgage. The £25k minimum is usually for new lending and not existing customers looking to switch products ( in my experience )

Angryhalfling

I'm with the Natwest and all the fixed are £25,001 minimum deals which I thinks rather despicable.

So I can go onto standard variable rate at 4.0% and thats it!

Leon_W

Most lenders have minimum loan sizes. It really isn't worth their while faffing around with such relatively small loan amounts.


I would always advise clients of mine with small loans to get the best possible tracker rate or go with a lender that has historically lower SVRs as it is unlikely to be cost effective to keep switching. By the time all the costs in switching ARE applied it will probably work out more expensive. 4% isn't that bad so just overpay as much as you can.

dimbo61

£16,000 at 4% over 7 years is £218.70 a month.
If you can afford to overpay each month.
Simply not worth moving lenders.

Angryhalfling

dimbo61 wrote: »

£16,000 at 4% over 7 years is £218.70 a month.
If you can afford to overpay each month.
Simply not worth moving lenders.

This seems to be the way to roll unfortunately. Most lenders only seem to be doing 5 yr fixed for higher borrowers.

Re the trackers i'll have to play about with them more but the fees are all set at £995 or worse from what Ive seen so far which is like + £40 a month

amnblog

Angryhalfling wrote: »

ethical providers

Ethical providers - Que?

Angryhalfling

amnblog wrote: »

Ethical providers - Que?

Well we can live in hope ha! I almost switched my bank account across to the co-op on those grounds but im pleased I didnt bother.

HSBC seems to be teh best 5 year fixed I can get that will lend to people like me (less than £25000) if anybody knows better can you let me know before Saturday!

Just going for fixed so I can forget about it, then I only have a year left on it whoop whoop!