To remortgage or stay put?

Blu4

Hi all,

My husband and I are in unusual circumstances as we have a big age gap that is impacting on our mortgage. I am looking for guidance on who can give some mortgage advice or even advice from people in the know on here.

Our situation is this:

£70,000 mortgage, 25 yr term, 20 yrs left.
Further advance of £5,000 along the way and as we're nearly 3 yrs into a 5 yr fixed rate we have a redemption amount of just under £70,000.
We're not desperate for money but could do with a little less going out for month and our circumstances may be changing in the next year meaning we could be a lot worse off.

I've looked into the 10 yr fixed deals that have recently popped up and credit scored with tsb. However, we would need to transfer the property from joint to me (hubby's idea rather than mine) and, as i have a low income, the term would need to be extended to 29 yrs minimum.
This would mean a saving of £110 p/m but £9,500 worse off overall and 9.5yrs extension.

Or we could remortgage as above, overpay by, say, £80 p/m, save £30 p/m, term would be only a year more than now and save around £2,500 overall if I have my figures correct.

Of course, we could stay where we are and wait for the next lowest erc bracket to kick in in September but I'm thinking all the deals may have disappeared by then.

Any help would be appreciated as I'm not sure what else should influence our decision or what the transfer of equity could mean for us.

Blu4

Mainly jut looking for where I can get advice on this kind of issue?

pjread

Sounds like you want a broker, but have you allowed for mortgage fees and an ERC in your calculations, plus legal costs for a transfer of equity, and are you sure you really want a 10 year fix? Are you at the 'right' LTV for the deals you're looking at?

Also, if you know about an impending change of circumstances, you'd be obliged to tell the lender (I'm sure they'll ask), again one to discuss with a broker there.

getmore4less

You are missing all the important details like rates, cuurent and followon, ERC, deals you think you can get, incomes.

why do you think you need to go from joint to you?

I think you probably should be looking at your other outgoings if you are fiddling with a mortgage to save £30pm there will be greater savings to be made elsewher.

Blu4

pjread wrote: »

Sounds like you want a broker, but have you allowed for mortgage fees and an ERC in your calculations, plus legal costs for a transfer of equity, and are you sure you really want a 10 year fix? Are you at the 'right' LTV for the deals you're looking at?

Also, if you know about an impending change of circumstances, you'd be obliged to tell the lender (I'm sure they'll ask), again one to discuss with a broker there.

I didn't actually realise a broker could advise on this, thought it just finding cheapest deals for ltv etc. Yes, allowed for all fees in above calculation. Transfer of equity would be £318 and covered by the £500 cash back. Yes, 40% ltv so offered 3.19%.

As for the product term, we're in our forever home, it's portable anyway. What else do i need to think about?/have I forgotten?
I've spoken to the mortgage advisor, nothing needs to be declared so far in advance for these change in circumstances.

Thanks for your help

Blu4

getmore4less wrote: »

You are missing all the important details like rates, cuurent and followon, ERC, deals you think you can get, incomes.

why do you think you need to go from joint to you?

I think you probably should be looking at your other outgoings if you are fiddling with a mortgage to save £30pm there will be greater savings to be made elsewher.

Thanks for your reply.

I'm not sure whether you mean existing mortgage rates etc. or on new product. I've compared our existing to the new, and depending on whether/how much we overpay we would be £15 better off p/month with 2 months shorter term and £3,500 better off overall. We're not particularly worried about the monthly saving, just want to pay less overall and not throw money away.
As my income is low this is the best rate I can get - nationwide and First Direct won't lend on affordability.

Only I can borrow now as my husband is too old to have a mortgage for the term we need.

I definitely can't make any savings elsewhere in our outgoings apart from food so trying to make sure we apply the same principles to the mortgage as we do with everything else, but feeling out of my depth and don't want to make the wrong decision.

Blu4

I know I'm talking to myself here now lol but have also now looked into inheritance tax just in case something does happen to me and our property value is not worth much more than half of the threshold amount. Together with our savings I'm pretty sure we won't reach that figure, ever!