Fixed term ending new rate 4.95% Help

Towser

Our Fixed term is ending and the new rate is 4.95%.

I can renegotiate a new deal but without knowing what a good rate is for our type of mortgage it's tricky.

Last time I just said the rate was unacceptable and they said no problem have this new lower one which we fixed at.

We will be paying £813.98 a month on this new higher rate.

Plan on staying in the property long term.

LTV: 82%

Term: 18 Years left

Not looking to overpay in the near future.

I'm assuming rates will not drop any lower, so we want to decide which is best to fix with.

We have a strange mortgage as my husband works for himself and only just got a mortgage with the only company who would give us one RBS. Even though we could afford it as rents are soo much higher.

It is a tracker mortgage so 4.95% seems very high as the BOE rate is so low at the moment.

I look forward to your reply.

Towser

Anybody got any thoughts, there have been several viewers?

squeeks

Have you thought about:

1. Speaking to a mortgage broker?
2. Tried putting the numbers in here: https://www.moneysavingexpert.com/mortgages/best-buys/

ACG

This will come down to how many years accounts your husband has and the figures involved.

Where self employed is involved its usually not a bad idea to speak to a broker as that can cause problems if the figures are not entered as the lender wants.

Thrugelmir

Towser wrote: »

I can renegotiate a new deal but without knowing what a good rate is for our type of mortgage it's tricky.

You'll be be offered a choice of products. Mortgages aren't negotiated.

Start by asking what your options are. Then you'll have something to compare to.

Towser

Hi,

I didn't want to waste any money on a mortgage broker so have gone with a review with current lender who went through all the options - over an hours time.

I played with the numbers on the best buys and came up with very similar numbers so that is all good.

Our new deal is a fixed rate of 4 years at 4.19% paying £765.21 per month on a repayment over the next 18 years. Our LTV is actually 38%.

Anybody got any thoughts, there have been several viewers?

justcat

Towser wrote: »

Anybody got any thoughts, there have been several viewers?

Sometimes people like to view and don't have an answer or what they were going to say, someone else has said.

I don't know what you mean by "waste money on a broker". A brokers recommendation can often pay for the fee they charge. And that's if you go for one that charges fees. Many don't so why not speak to one of them. At least they will be able to go through you financial details more than people on a forum can.

andyfromotley

I guess it is dependant on your circumstance and the amount outstanding but 4.19% is not a terrific deal.

Nationwide will do you a 4 year fix at 2.64% which on a £100k mortgage is a saving of over £900 per year. (this was the only one a checked, no doubt there will be better deals available)

Given that this took me all of 90 seconds to do i'm guessing that Mortgages aren't your strong point, in which case go and see a broker. I doubt very much that you will find it 'a waste of money' in fact it will almost certainly do the exact opposite!!