Mortgage/Loan advice

Daniel8t6

Hello everyone,

Looking for some advice in regards to my mothers mortgage, here are the details I have to hand without going with her to the bank...

Was a right to buy mortgage, my mother also borrowed slightly more to improve the home.

She has been paying her mortgage for about 12 years.

She had to get out a loan with the same bank to "buy out" my Dad during their divorce.

She has recently come out of a fixed rate (7%) and is currently on a tracker.( not 100% sure what it tracks at but it is obviously lower than when they fixed).

My Mother is not very good with numbers/rates etc (and i'm no expert!). What I do know is that usually people that come out of a tracker and don't shop about are placed on a bad deal, similar to when you let your car insurance auto renew.

I am going to go with my Mother to her bank and ask for all the information I can about the mortgage and the attached loan. The aim is to potentially go to a broker or simply shop about for a better deal.

I know there are some good deals to be had at the moment with the base rate as low as it is, not sure on the equity my Mother has at the moment though. I am also aware that the chance of a significant rate hike within the next few years is unlikely.


Could anyone help me with what sort of questions we need to be asking the bank. I appreciate some are obvious like tracker rate, equity but I am concerned that this loan is somehow linked to the mortgage and would make portability impossible/costly.

We need an "idiots guide" to get as clear a picture of the situation as we can.


Many thanks in advance.


Daniel

Thrugelmir

Daniel8t6 wrote: »

What I do know is that usually people that come out of a tracker and don't shop about are placed on a bad deal, similar to when you let your car insurance auto renew.

Unless you know the terms attached to the product. Then you can't possibly know. We have had abnormal interest rates for 6 years plus the Funding for Lending scheme distorting rates. Another time it may all be totally different.

Daniel8t6

Ok,

I accept that (maybe I was generalising a tad), and I know that rates have been abnormal for awhile, any advice on what to ask about the product my Mother has?

termhero

Wouldn't a mortgage statement show you? Probably best to go to the bank already knowing in my opinion.

silvercar

So she needs to phone the bank and ask the following:

What is her current mortgage deal? (expect an answer like Bank of England plus x%, if it is a tracker).

Is there also a secured loan or has that been amalgamated into the mortgage?

What is the total amount outstanding?

When is the mortgage due to be paid off?

Are there any early repayment penalties?

Some or all of that information should be on her paperwork.

dimbo61

Hi Daniel 86
As others have said you need to speak to your Mum,s mortgage lender by phoning the mortgage centre number which you should find on her mortgage statement.
Now Mum may now have a Very good deal as many lenders did not expect the BOE to stay at 0.5% for over 5 years.
So if she is now on BOE plus X% that maybe a very good tracker.
Her Income, age, Loan to Value, credit history etc would all be considered if she wants to remortgage to a new lender.
Post some figures when you find out the details