Help with mortgage advice

jayl_2

hi everyone I need advice with remortgage charges from the lender,my partner has 2cjs and is with a company for debt management.We want to change our mortgage from interest only to fixed,the debt co gave us a mortgage co.( Friendly Loans)they charge 5% up to £3000,plus £950 for the arrangement fee,also £110 for the EXIT FEE which is non returnable
we have had the first mortgage for 11mths I paid £30,000 deposit on a £120,000 house,borrowed £90,000 I know the redemtion charges will be about £5,0000,do you think we should still go ahead with remortgaging at these figures and also are these normal prices for people in our situation,
many thanks in anticipation
jayl

homer_j_3

Im sorry but I am struggling to read what you have written and understand it.

You want help with remortgage charges? Do you mean your current lender has early repayment charges and you are querying these? Or is it that you need help in calculating whether its worth changing?

Your partner has 2 cjs - I presume you mean 2 ccj's and has other debt being managed under a debt management plan or are the CCJ's being repaid under a plan?

We want to change our mortgage from an interest only mortgage to a fixed. - You either want to change from interest only to a repayment mortgage or you want to swap from a variable rate to a fixed rate mortgage or a combination of the 2 (switch from int only on variable to int only or repayment on fixed). What is it that you want to do?

Your Debt management company referred you to a specialist broker (friendly loans) and they are charging you a 5% fee (max £3k) plus they are looking to add £950 of the lenders charges onto the debt.

You do not need to pay for the advice, it seems as though you are being taken advantage of a little bit by your niavity, especially for the relatively small mortgage that you have. 5% is extortionate in my opinion.

My recommendations would be to seek advice from a fee free broker who can fully assess your situation. The broker you have will probably work from a limited panel of specialist lenders (just by the nature of referrals they receive) and will play on your niavity that they are the only people that can help. Get someone who can look at your full circumstances and then assess what the best route is for you. DO NOT PAY £5K FOR ADVICE!!!!

If you could give us details of:

Your exisiting lender
Your current deal (fixed/Tracker/Variable/Discount etc)
Current Int Rate
Mthly Payment
Any charges to get out of your current deal

If you then let us know

Income details for all applicants to the mortgage
Debts that you have with monthly payment
Size of CCJ's with confirmation if they are settled or not
Any mortgage arrears within last 12 months

Current house value
Mortgage required

With that information, we will be able to give you an idea of how "good or bad" your position is and whether a remortgage is the right thing for you.

Friendly Loans - no wonder they can be friendly for 5% broker fee. Sharks!

jayl_2

hi homer-j.sorry for not explaining better,I was trying to keep it as short as possible,here is the list of answers toj your questions.

exsisting lender is G Mac
current deal is interest only
current rate of interest is 8.49%
monthly payments are £640.76
charges to get out of deal are 1 -12mths £5.620
13-24mths £4.714
we have been with G Mac 12mths at the end of Oct.

Income details combined wages are £25.000
he has a pension of £420.per month
monthly debts are £580

ccj's one for 40.000 also 1 for £3.000

there is no mortgage areas never ever missed any payments.

house value about £120.000 +(scotland, prices over asking price)
I paid £30.000 deposit and borrowed £90.000 from Gmac

I would like to put his debt of £6.500 added to the remortgage and want a repayment mortgage we are 51 and 52yrs of age .many thanks for your help
jayl

homer_j_3

from what you are saying

you want to remortgage for 96500, if this is the case, you will need to consider the 5k charge from the lender and the 5k advice fee so you will be looking at 106,500 borrowing.

I do not feel that you need to pay the 5k advice fee and would steer well clear. Without seeing you and doing a full review, its very difficult to say for certain but I dont think that it would be too difficult to do.

Clearly you are finding the variable rate frustrating and its not a good time to be on a variable rate with a lender that borrows in the way GMAC do. I would take your paperwork to a local whole of market broker who can properly assess your needs and look at your circumstances properly.

WildHaggis

What I'm not sure about, is why you want to remortgage?

Just stay with your existing mortgage, it will not cost you 5000 pounds to do that! Interest rates would have to rise by 5% (almost double) for those costs to make any change worthwhile.

Or, ask your existing lender if you can switch to a fixed rate.

jayl_2

thank you homer-j,..wild haggis thanks as well for the input, phone them tomorow see what they say,cheers jayl

SirSaverOBE

Hello!

Not sure if this is the right thread, but I would be very grateful for some advice. My wife and I are now looking to buy our first house, and will be looking to get an Agreement In Principle in a couple of months time.

FIRST QUESTION: I have worked like billy-o to pay my debts off but still have a bit of a loan that I pay off each month, which doesn't seem to have too much of an impact on the loan calculators of various bank's websites - BUT -

- BIG BUT - I still have an overdraft of £1500. How do lenders treat overdrafts? With credit card balances, it's easy, as they dock the amount they lend according to the balance you owe and monthly payments on that balance. My overdraft is partly interest free and costs me next to nowt. Will they treat this as credit as they do with cards?

ALSO - do they do a full credit check and the check of your statements, payslips, credit etc. when you do an AIP or do they wait until you get the formal offer?

Any advice gratefully received!

Sir Saver OBE

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