Woolwich query

kmate

We finally found a MA who seems ok.

At present we have a mortgage with Woolwich, the rate is 4.something (!! not got figures with me!! ) and so it is quite a good deal, obviously its alot better rate than most of whats on offer at the moment.

We need to increase our mortgage to buy new house. MA has suggested that we keep Woolwich original mortgage as good rate, and simply apply for top-up mortgage with Woolwich, for the extra amount.

She suggested that we change our product to interest only (both parts of the mortgage) to bring the payments down until I return to work full-time, approx 2yrs.

My question is, if we remain with the Woolwich and make these changes, will we still have to pay the early redemption fee? I can totally understand having to pay the charge if we leave the Woolwich, but wonder how it works if you stay with them (and in fact - borrow more from them)

We have looked through our original woolwich paperwork, but cant find anything along these lines. AND our local Woolwich (now Barclays obviously) haven't called back. Due back to see MA next week, but would love to know sooner!!!!

The charge isnt huge, but would be handy not to have to find it!

payless

noramlly the waiving the fee is the main benefit of "porting" the rate.

In your case it looks like you could win both ways
Avoid the fee
Keep a good rate.

( thats assuming the deal is portable.. although most are these days) Also assumes Woolwich happy to lend the extra

Although obviously only an adviser with all your details can make that an actual reecommendation


Becareful though on the topup product- that its competitive, but also at any tie in period ... ideally you donn't want new product to have a tie in , or if it has one similiar to current tie in date, as you will likely want to combine both parts onto one rate at some time ( either with W or eslewhere)

kmate

Thanks for that. Yes the original mortgage is portable. Glad you said about the two tie in periods, hadnt thought of that. On woolwich standard mortgage calculator - we wouldnt get the amount, even though other lenders such as A&L etc have said fine. Having said that, the MA is aware of our incomes etc, so she must feel reasonably confident at this stage that Woolwich will agree to the amount. (or so I am hoping!!) We have had two mortgages with woolwich and 100% good track record of payments etc, so hopefully this will be taken into account.

In my area, the housing market is difficult. Houses are taking forever to sell, and people are really having to drop their prices. Does this have an impact on the amount of people who get mortgage offers?? Ie; do the banks get so desperate for the figures that they "pass" mortgages that they would normally refuse? Just wondering how it works........