Remortgaging - from Halifax

kaushal101

Hi,

My current deal with Halifax is ending Nov end, and am planning remortgage with someone else.

I was considering Barclays 2 yr 1.49% tracker. But looks like the follow-on switch options with Barclays are either not great or will involve product fees. So after two years I might get stuck with a half-decent rate.

Would Nationwide be a better option? They also have 2 yr tracker at 1.49%. Overall I've seen Nationwide offering better deals than Barclays.

Thanks for any advice/suggestions.

Balance remaining - £211,000
Looking to remortgage for - £200,000
Property value - £300,000
Current deal - 4.67% fixed, ending 30.Nov

marathonic

In your shoes, I'd go with First Direct if possible.

Your LTV appears to be 67% now. First Direct's best products are available for 65% LTV.

I'd move to their fee-free 2.59% lifetime tracker option which is available up to 75% LTV.

Then, after you know what they'd valued your house at, you'll know roughly how long it'll take you to get to 65% LTV. Armed with this information, you can pay a fee to move to their lower-rate 75% LTV product or else pay down capital until you can move to their 1.99%, 65% LTV, lifetime tracker.

This all assumes you meet their criteria, etc.

If your figures are correct, you only need to pay your mortgage down to £195,000 to get to 65% LTV.

amnblog

How do we know if Barclays, Nationwide, or First Direct will lend?


It is about who, with the right product, will lend.


BTW - Nationwide don't have a 1.49% rate currently - and how did we work out that Nationwide options will be better than Barclays in 2016?

marathonic

They might not lend which is why I said "this all assumes you meet their criteria".

Of course, First Direct don't go through brokers so that's why my remortgage, which I'm going through now, involves applying direct to First Direct given they appear to have the best rates for my situation. Should I be turned down, only then do I plan to consider a broker.

amnblog

Your choice, but if you do not want to pay more than you need to a broker would be a good idea. The FD product is not the 'apex'.

kaushal101

amnblog wrote: »

BTW - Nationwide don't have a 1.49% rate currently

Yes, my mistake. They currently have 1.44% 2 yr tracker with £999 product fees.

amnblog wrote: »

- and how did we work out that Nationwide options will be better than Barclays in 2016?

I understand it is very difficult to guess. I was just wondering if there is a trend. For ex. if I see current rates for Barclays & Nationwide for their current customers (for switching products), Nationwide is a little better (2.19% compared to 2.49% of Barclays). That sort of thing gives some idea at least, that's what I feel. Of course things might change completely in 2 years.

kaushal101

amnblog wrote: »

How do we know if Barclays, Nationwide, or First Direct will lend?

?

I've never missed a payment in 24 months, have no other loans, no issues with credit check etc., have always paid credit card bill full every month. Clean record. I can't see a reason for a lender to refuse me a loan, to be honest. That's why I'm assuming that shouldn't be a problem.

Thrugelmir

kaushal101 wrote: »

I've never missed a payment in 24 months, have no other loans, no issues with credit check etc., have always paid credit card bill full every month. Clean record. I can't see a reason for a lender to refuse me a loan, to be honest. That's why I'm assuming that shouldn't be a problem.

You've fail to mention affordability. Not just about passing the credit checks.

kaushal101

Thrugelmir wrote: »

You've fail to mention affordability. Not just about passing the credit checks.

True. That too. Absolutely fine, with income of 70K. I've been told that can borrow around £300K.