Remortgaging

Saff1

Hi everyone,

I need some advice on remortgaging as our 2yr fixed deal with nationwide is coming to an end August this year.
I am starting a new job soon so want to be able to show that I have been with my employer for at least afew months and wanting to pay off as much as I can on x2 0% interest credit cards before we apply for a new mortgage to give us the best chance.

My question is when should we be looking into finding a new deal?
I want to leave it quite late because of my situation but I've read that you should look months before the deal ends.

I also want to drop the repayment years from 23 to 17 because I've had a look at mortgage comparisons and monthly repayments would only be around £500 (borrowing £84k with a value of £105k over 17yrs) and that would be less than 20% of our total monthly income. We currently pay £410 a month so I feel £500pm is definitely affordable.

Any advice is welcome!
Thanks

getmore4less

I think you are over thinking this for a £84k mortgage

Nationwide usually have decent retention deals, which will be a simple product switch.

Why reduce the term when all you need to do is overpay.

You can start that now if you can afford it now.

Edi81

For such a low mortgage amount and considering you are with Nationwide who are one of the better lenders for existing customers you should just overpay each month.

Reducing your contractual term will require a full review.

Saff1

Ahh I see! Thank you this is completely new to us so I did think it would be probably more complicated than it actually is.
I'm sure the deal we are currently on has quite a big charge for overpaying which is why we never have but I'll take that into consideration when we switch to get a deal with no overpayment fees.
I think in my head I thought financially we would be saving money by reducing the term but if we're better off just overpaying we will do that instead

Edi81

If you are in a fixed term with nationwide you can only overpay by 10% a year. Even on £84k that’s still over £600 per month.

getmore4less

There is usualy a 10% free of charges overpayment option with Nationwide mortgages

£100pm extra won't get close to that

Just watch those CC coming of the 0%

Saff1

Perfect I'm glad I asked on here! Thank you for your advice

mark55man

I would agree that its better to overpay and keep the flexibility of the lower must-pay amount. I did the opposite and would everything up to one lump for the last 7 years of my mortgage, and it took forever to work through, and although it is affordable in hindsight I can see advantages of paying less with overpaying options.

Do check the T&C but in my experience most places are OK (ie won't charge) with a bit of overpayment (and 10% a year is quite a lot). You need to understand exactly when the payment is applied to your acount - ie no point taing it out of natiowide bank account where it is earning 5% to leave it "pending" for 11 months - which did used to happen. I imagine Nationwide is one of the better ones, but do check

somethingcorporate

As you come up to renewal nationwide will contact you. I had a couple of emails and finally a call.


Online renewal couldnt be easier (you dont even need to speak to anyone!) and they offer £100 cashback for retentions.

Thrugelmir

Saff1 wrote: »

I also want to drop the repayment years from 23 to 17 because I've had a look at mortgage comparisons and monthly repayments would only be around £500 (borrowing £84k with a value of £105k over 17yrs)

Huge assumption to base the next 17 years remaining at the same low levels of interest rates. Never worth over committing.

Clear the 0% cards before the promotional rate ends first.

Chris1977

Hi apologies in advance! I don't know how to create a post on MSE yet! I'm just anxious for help. I purchased a house last year with my partner for £121,000.00. The house is valued at £130,000.00. I have put down a deposit of £18,000.00 is there a way for me to remortgage, get my deposit back to help me buy my own place? Thanks Chris