Mortgage advice Skipton

sazandy25

Hi, I am after some advice.

Me & my wife have a mortgage with ING direct (soon to be Barclays direct), our current deal 3.99% fixed rate expires 30/9/14. Our current payments are £546 a month. LTV of 70% with 15 years left. House value £105000, amount owed £73500.

Having spoken to L&C brokers the best the they could find for us was 3.75% with Skipton, 5 year fix (to avoid the expected interest rate rises).

But Skipton would only lend us 70250 and over 17 years giving us a monthly payment of £466. Obviously we would over pay, but are a little confused as we have been paying £546 every month without a problem.

How can they blame affordability when for the past 3 years we could afford the £546 payments easy enough.

Are Skipton affordability checks over cautious???

Does this sound like the best deal we could get or do I try a different broker???

ACG

Skipton are not the most lenient when it comes to affordability, but between now and when you took out your last mortgage a lot has changed.

I like Skipton, applications tend to just go through. Underwriters seem to have common sense and being up in yorkshire theyre all quite friendly.

If your intention is to overpay, does it really matter what the term is? You will bring it back down yourself anyway so it should be fine? (assuming your allowed to make the amount of overpayments you are planning on making.

Thrugelmir

sazandy25 wrote: »

How can they blame affordability when for the past 3 years we could afford the £546 payments easy enough.

Read the news. Interest rate rises are on the horizon. Added to which lenders are going to have assess affordability at rates 3% higher than they currently are.

You've been lulled into a false sense of security after 5 years of cheap money.

sazandy25

I know, its just slightly annoying, when we remortgaged last time (3years ago) we dropped down 2 years.

I understand what people are saying & why Skipton are being as they are, I suppose Thrugelmir is right, we've been out the market for 3 years ticking over nicely and now we're back at searching stage again, at probably not the the best time.

Still best to go for this and fix for 5 years as rates are going to go in one direction!!!!

Thanks for listening while I moaned :T:T:T;););)

sazandy25

Yeah can overpay 10% of the loan value per year. Do you know if that would come straight of the capital or the total loan amount??

ACG

Any overpayments would reduce the capital.

sazandy25

thanks, was hoping you would say that.