We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Staircasing & Early Repayment Fee

Jadakiss
Posts: 8 Forumite
Hi Forum Folk
Some assistance please, I own 40% of a shared ownership property and have been told I can re-mortgage to anything between 80% - 100%. Unfortunately I am locked into a fixed rate mortgage (ends April 2020), a new mortgage will see me paying an extra £197 a month.
The rent if I stay with existing mortgage will be £10,000
My questions are:
[*]Is it worth paying the exit fee of £3500 or should I just wait it out?
[*]if I wait it out until the end of the fixed term, is it likely that the flat price will jump substantially thus me loosing out on a bigger share?
Any other advice welcome.
Thanks
Some assistance please, I own 40% of a shared ownership property and have been told I can re-mortgage to anything between 80% - 100%. Unfortunately I am locked into a fixed rate mortgage (ends April 2020), a new mortgage will see me paying an extra £197 a month.
The rent if I stay with existing mortgage will be £10,000
My questions are:
[*]Is it worth paying the exit fee of £3500 or should I just wait it out?
[*]if I wait it out until the end of the fixed term, is it likely that the flat price will jump substantially thus me loosing out on a bigger share?
Any other advice welcome.
Thanks
0
Comments
-
I specialise in shared ownership mortgages and have done for 10 yrs. It would depend on your existing rate and if your existing lender offers additional borrowing. Also what your new loan to value would be (i.e. if you are tied into a 3.5% product but could get a new one at 1.8% it may well be worth it - it all depends on the figures and interest rates involved)I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Perfect! Thanks for your response.
The mortgage would be with a total new provider as suggested by broker. I will also engage with existing lender to see what is possible (he didn't mention them).
Also, is it worth using a broker i.e. do they get better rates or should I go direct? The charge is £400.
I will find out the interest rates and update the thread.0 -
The broker may not have mentioned them as he wouldn't be able to do the business with them.
If though the maths works out I would always investigate going direct with a client (and have recently sent someone back to nationwide to staircase as I can't do additional borrowing with them but it is in the clients best interest as they had an erc) I will get the client back on remortgage as I gave the best advice.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
put up the numbers
The current mortgage and how much you need from the current lender
The deal that's on the table with a new lewder paying the ERC,
don't forget all the fees to switch.0 -
Spoken to my current mortgage provider, there will be no cost if I decide to staircase with them. As a rough estimate they say they can lend £204,000 (staircase to 60%) to go to 100% I would require £286,000. I have a call with an advisor on 22nd August to discuss my options and whether it would in fact be possible to go to 100% once they have done affordability assessment.
*My current LTV on my share is 55% and the interest rate is 4.29%.
The broker has found a deal which can lender me : £242,090 - the mortgage is Lender:
*Santander UK Plc Plan: 5 Year Fixed ?999 Fee Remortgage Cashback - I can't see any LTV/interest rates - maybe I am missing something, will double check.
I'm also on maternity leave and my pay will drop next month so ideally want to get this sorted before then.0 -
who is your current lender, what is the value of the property and how much in total do you need to borrow (both mortgages together) over how many years
Your existing rate is quite high (at a guess leeds?) in which case you may be better off ditching and switchingI am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Wow you are good! My current lender is Leeds.
Approx value is £350,000
Approx equity is £60,000
If I have this right, will need £290,000 to staircase to 100%.
New mortgage term I am looking at is 25years.0 -
Put up all the details people don't have to guess.
Current mortgage the details needed
Outstanding amount
Outstanding term(full and fixed period)
Rate
Payment.
ERC
Same for the new new offer on the table
Same for the additional borrowing your current lender has offered.0 -
Also how long have you owned the property and was it newbuild on purchase?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Also do you have enough savings to cover stamp duty and legals?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards