Any advise on good deals?

sparklewing

We are moving house soon(if our offer is accepted) and I'm just having a look at various websites to see what would be best for us.

We have offered £115000 we have 23k cash(or will after the sale of my flat is completed) although this has to pay for selling/buying fees, paying off 4k debt and the house we have offered on needs a fair bit of work so we would probably be looking at paying a 5%deposit and using rest of money for that.

I have 2 years left on my current fixed rate with Halifax ([EMAIL="56k@5.89%"]56k@5.89%[/EMAIL]) it would cost 1k to end this early but I'm happy to do that for a better deal elsewhere.

I went to halifax for a quote and they said the best thing to do is end the current deal and switch to another mortgage with them(if I stay with them don't pay early ending charge). They offered 7.09% fixed rate for 5 years or 6.19% tracker for 2 years and said I should go with tracker.

I'm not keen on tracker rates to be honest I want the security of knowing exactly how much we need to pay each month. However we can't afford their 7.09% fixed rate.

We have combined earnings of £32000 just now(I get about 5k payrise each year and bloke is looking for a new job but obviously none of that is being taken into account while we work ou what we can afford).

We can afford approxiately £650 a month max on payments, will probably go with interest only, this way we can save what we can afford each month towards paying off capital and when we have a bit more money coming in we can look into changing to repayment.

I am 26 so we can get a mortgage over up to 40 years.

Any suggestions, good deals etc? Would prefer to pay an arrangment fee and lower monthly repayments as we will have some cash to do this if this is one of the deciding factors.

Sorry it's so long and thank you.

MortgagesInc

Bristol & West have a good value fixed rate at the moment - 6.25% for 2 years, £699 arrangement fee added to the loan but free valuation and £500 cashback on completion. They should lend you sufficient for what you are looking to do.

toonfish

Did Halifax really advise you to pay off a 5.89 fixed and take a 6.19 tracker?

That has to be one of the most stupid bits of "advice" ever.

MortgagesInc

Stupid - downright criminal!!

sparklewing

toonfish wrote: »

Did Halifax really advise you to pay off a 5.89 fixed and take a 6.19 tracker?

That has to be one of the most stupid bits of "advice" ever.

Yes, she went through my options and her suggestions I asked if it wouldn't work out cheaper for me to stick with the remainder of my fixed rates and get a new mortgage for the other 50k but apparently no' that wouldn't make much difference and would be a lot of complicated work for me in a couple of years when my fixed rate run out'

Her theory was as 45k of my mortgage fixed rate runs out in 2009 and the other 10k(released some equity to do some work on the flat and increase value before sale) runs out in 2010(also 5.89% fixed) it would mean me having to sort out new mortgages twice in the next few years.

I don't know what's best really, I just assumed I'd keep the original part of the mortgage and get a 3 year fixed on the new bit then in 2009 when the original bit of the mortgage runs out put that on a 1 year fixed then in 2010 move it all to another mortgage together? That made sense to me not sure if it will make sense to you.

But according to Halifax that will work out expensive and time consuming for me and the best deal they'd give on the new bit is something like 7.10% fixed for 2 years as my deposit wouldn't count or something. She kind of confused me.

If I got a new mortgage for the excess over current mortgage so 50kish and put down a 5k deposit would that be a 90%LTV or would it still be classes as 97% (or whatever haven't done actual sums) LTV?

Thanks everyone.

MortgagesInc

It would start to get a bit messy as you probably wouldn't be able to take out a 1 year fixed to tie-in the expiry dates, but I'm sure it would be more cost-effective to 'port' your exisiting mortgage and take the remainder on one of their products with a 2009 'end date'

sparklewing

MortgagesInc wrote: »

It would start to get a bit messy as you probably wouldn't be able to take out a 1 year fixed to tie-in the expiry dates, but I'm sure it would be more cost-effective to 'port' your exisiting mortgage and take the remainder on one of their products with a 2009 'end date'

I did consider the dates however both my curent mortgage parts end on 1st of december and our proposed moving date on new house is 1st december so they would all end on same day, just different years :rotfl:

Maybe we could port the current part and then when the first stage runs out just pay the basic rate for a year until we can swap everything..... actually other option would be to get new mortgage for 2 years and then everything bar 10k runs out on same day and the early repayment charge on that wouldn't be much so in 2009 could change everything to new deal?

Sorry I'm not very good at explaining what I'm thinking.:o

I presume I can't keep the current halifax mortgage and get the other bit from a different lender? it would basically be a remortgage wouldn't it?

I really hate house buying, never doing it again!

MortgagesInc

The second part of your post is what I meant - most of their current deals have an expiry date of 30/11, so that would fit with your current deal and then pay a redemption on the £10k, if you choose to move at that stage. Halifax may even have the most competitive rates at that stage, so you might choose to stay with them.

sparklewing

MortgagesInc wrote: »

The second part of your post is what I meant - most of their current deals have an expiry date of 30/11, so that would fit with your current deal and then pay a redemption on the £10k, if you choose to move at that stage. Halifax may even have the most competitive rates at that stage, so you might choose to stay with them.

Thank you very much I think that sounds like the best and cheapest option for us for now. Am seeing an independent broker on Thursday will bring it up with him and hopefully get everything straight in my head.

Thanks again for your help.

MortgagesInc

My pleasure