Advice needed, what to do next?

davnav

Would like advice please on what's the next steps I need to do (renewel) .
I'm coming to the end of a 5 year fixed mortgage at 3.7 rate, this ends in Sept.
This is my first mortgage, what should I be doing now to prepare for the renewal purpose, or what would you do in my position. Looking at another 15 years to finish £28,000 remaining.

Big thanks

getmore4less

Which lender?


Any way you can increase your payment above £200

davnav

Lender Halifax
Prefer to keep it around same payment as not position to up payments at the minute, sadly

getmore4less

That's a shame Halifax are a bit of a rubbish lender for small mortgages.

I would start investigating if you can move to a better lender, problem is on such a small mortgage fees can make the change harder to get the move to add up.

What LTV are you?

davnav

Think my Ltv is 36%
Where should I be looking for a better deal.
Thanks for the advice.

getmore4less

With LTV 36% that should access the best deals if the affordability stacks up and the lender will do it for £28k.

Once on the lower rate you should save over staying with the Halifax unless Halifax bring their rates in line with the other lenders.

if we project £28k over 5 & 15 years with some rates before any fees.

borrow rate payment left after 5 interest paid at 5y and 15y

£28,000, 3.7% £203pm £20324, £4,500, £8,500

Halifax new 5 year fix rates to day

£28,000 3.44% £200pm £20174, £4173, £7,800

if you could switch to say a 5 years fix 2% deal for no fees
(there are few lenders around this its down to the cost of switching.

£28,000 2% £180pm £19,594, £2,394, £4,500

If you are really keen to keep payments down and would struggle if they went up, can you think about a longer fix there are some 10y deals about.

not sure if you could get it but Coventry have a 10y deal with £1k fee @ 2.25%
This has a 5y ERC period so does not lock you in longer

£29,000 2.25% £190pm £20,396 £2,796 £5,200


Looking at the 5 year numbers there is enough saving to cover fees(legal, valuations,exit fee from Halifax) to make the switch to a better lender doable.

There is even enough of a saving for a fee based broker to have a look
(fee free might not make enough money on that size of loan)

Small mortgage and affordability may limit the choices but worth a look.

davnav

Massive thanks for your time and effort for this advice it's much appreciated,
You've given me loads to look at and think over, excellent work