18m to go on Mortgage

MortgageMamma

kingstreet wrote: »

So the interest at SVR is £1,795pa against £675pa if you can get a rate of 1.5%.

The problems you have are the amount, the term and the need for interest-only.

Normally I'd say talk to a broker, but I suspect most won't have the time for a £45,000 mortgage which will earn a fee-free broker about £144.

Then you add in the broker fee c£495, the valuation or funds transfers, the time taken to do it - savings would be negligible plus extending the term 6 months

amnblog

Daniel_Sparkes wrote: »

You should be able to find a broker who takes this on, on an advice fee free basis. They'll need to consider factors such as the potential for a longstanding relationship, opposed to seeing short-term gains.

Would you do the work and pick up the risk for £144 Daniel?

kingstreet

MortgageMamma wrote: »

Then you add in the broker fee c£495, the valuation or funds transfers, the time taken to do it - savings would be negligible plus extending the term 6 months

The bulk is interest-only, so changing the term has no real impact as the debt is going to be repaid when the repayment plans mature anyway.

For the small amount that's on repayment, the previous endowment premiums and saved mortgage payments from the interest-only element can be used to repay the remainder very quickly once the bulk is gone.

Like I said, I don't see anyone with the time to work all this out to the nearest penny who would want to take liability for the advice versus the potential earnings on a fee-free basis.

Those judging the value of business based on its future repeat/referral potential rather than on its current earnings need to be careful, IMHO. Nothing is guaranteed these days and however a good a job you do there is always another lender, another broker, another estate agent...

MortgageMamma

I agree King Street, I don't work on a fees free basis I value my time and expertise. Back in 2007 I worked on the fee free model but I was so busy juggling cases I worked 18 hour days and got ill. Life is so much more balanced now! I think the majority of advisers these days charge fees to give better service. Even the estate agency brokers do.

Daniel_Sparkes

amnblog wrote: »

Would you do the work and pick up the risk for £144 Daniel?

amnblog you may want to refresh yourself with forum rules. What you're asking me to do is to actively tout for business by responding to your question.

What I will say though, it is a shame that some supposed professionals within the industry still have a narrow minded approach and only consider short term gains. Brokers with this sort of viewpoint unfortunately give ethical brokers like you and I a bad reputation.

Also just to point out as a word to the wise, if you wish to deviate away from the true reason of the thread, which is of no relevance to the consumer, then by all means review my profile.

Boredatwrork

I was also With halifax all set for the SVR of 3.99%

This is the best thing you can do (in my opinoon)

Call up your current provider, find out what your LTV is

The best deal I have seen (FEE FREE) and great rates for a fixed are found here: Norwich and Peterborough Building Society

2 year fixes (they also do 3 and 5 years fee free too)

1.89% for a 65% LTV
1.94% for a 75% LTV
2.29% for a 85% LTV
2.74% for a 90% LTV

I signed up for them at the start of the year when rates where even lower and got a 2 year for 1.59%, the deal as I said here is the fact they are FEE FREE, I believe the only additional payment is £30 to the solicitors fee, which far out weighs the £1000+ fees for similar rates. So definately worth checking out.

silvercar

Have you checked that the endowment policies will produce enough to clear the mortgage?

Wack1888

Endowments will have enough mileage in them to just clear the £40k Int only part - still leaves the repayment side at £5k to be whittled down though.

Thrugelmir

Daniel_Sparkes wrote: »

amnblog you may want to refresh yourself with forum rules. What you're asking me to do is to actively tout for business by responding to your question.

What I will say though, it is a shame that some supposed professionals within the industry still have a narrow minded approach and only consider short term gains. Brokers with this sort of viewpoint unfortunately give ethical brokers like you and I a bad reputation.

Also just to point out as a word to the wise, if you wish to deviate away from the true reason of the thread, which is of no relevance to the consumer, then by all means review my profile.

Would you have happened to open other user accounts as well? Appears to be a connection between you. Using your business name isn't tennis.

Phil_H_MLIA(dip)_Cert_PFS

Not as irrelevant as it may first appear... are the endowments with-profits or (more likely) unit-linked?
If the latter then make the calculations; with no potential terminal bonuses to lose consider early encashment (bearing in mind that your endowments could actually fall in value over the next 18m) to repay the bulk of the debt NOW.
Then simply use all of the saved funds, ie the £1,600pa based on £40k @ 4% as well as the endowment premiums to overpay the £5k-£10k remainder.
Obviously you will lose your £40k life cover upon early encashment.