Renewing Mortgage

garcon6

Our fixed rate mortgage will come to an end in April 2015 will be thinking about a new offer maybe with a different lender. Our circumstances have changed as we have 1 child and expecting another one this month. My wife will be on maternity leave when its time to renew our mortgage so her payslip won't so much etc. My wife also has about £16,000 savings.


Our mortgage is a 5 year fix, house bought for £165,ooo and I put a £34,000 deposit and for the last 7 months have been making overpayments of £50. Our balance is about £119,000.


If we stay with our current provider The Leeds we won't have to show bank statements/payslips etc.


If we go to another provider we will have to show everything.


What are the best options and I think it would be wise to get a mortgage broker. We are currently paying £852 rate at 5.25% including insurance etc. Plan is to get a much lower mortgage obviously to save money as the rates are much lower.


What is the best way to look for a reliable mortgage broker.


Regards,


Garcon6

kingstreet

Ask friends and relatives for a recommendation.

Ask Leeds about its customer retention products to see what it may have available for you.

gazter

garcon6 wrote: »

Our fixed rate mortgage will come to an end in April 2015 will be thinking about a new offer maybe with a different lender. Our circumstances have changed as we have 1 child and expecting another one this month. My wife will be on maternity leave when its time to renew our mortgage so her payslip won't so much etc. My wife also has about £16,000 savings.


Our mortgage is a 5 year fix, house bought for £165,ooo and I put a £34,000 deposit and for the last 7 months have been making overpayments of £50. Our balance is about £119,000.


If we stay with our current provider The Leeds we won't have to show bank statements/payslips etc.


If we go to another provider we will have to show everything.


What are the best options and I think it would be wise to get a mortgage broker. We are currently paying £852 rate at 5.25% including insurance etc. Plan is to get a much lower mortgage obviously to save money as the rates are much lower.


What is the best way to look for a reliable mortgage broker.


Regards,


Garcon6

Get your insurances etc from somewhere else, probably not competitive when 'rolled in'. Ask the bank to tell you what the current state of play is, how far away you are from an LTV range. It might be worth a bit of heavy over paying for the next five months to get to the next boundary.

Hopefully you wont get gouged on the interest rates and get a better deal.

You arent really in a strong position to get a mortgage elsewhere though, it sounds like your financial circumstances have changed. If you were borrowing close to your max before, now with maternity and extra child its going to reduce what you'll be able to borrow with a full application at another provider.

Thrugelmir

garcon6 wrote: »

If we go to another provider we will have to show everything.

And may also cost you a considerable sum of money.

First port of call should be your existing lender. Then take it from there.

garcon6

Thank you for the advice probably are in a better position to stay put as it could be difficult to change providers. I could always ask a mortgage broker for advice. The Leeds criteria for seeking advice etc is 90 days before the fixed rate expires. We could have borrowed a lot more but decided against it which was right.

pinkteapot

Bear in mind that if you can't remortgage and simply keep your current mortgage, the SVR will probably be less than you're paying now so your repayment is still likely to go down.

On the SVR you'll be able to then remortgage whenever you like/can, so you may just end up on that for a while until circumstances are a bit better, at which point you can remortgage.

kingstreet

Leeds SVR is 5.69%.

nubbins

Hi Garcon,

I was with the Leeds not too long ago and enquired about their rates if I stayed with them. I cannot remember the exact figures but it was pretty cr$p compared to getting a remortgage with another lender. In the end by broker got me a free legals, free valuation remortgage with the Nationwide and on that property I am paying roughly the same with repayments as I was with Leeds interest only SVR. Depending on your mortgage length I reckon a good broker could get your repayments down to somewhere in the 500's.