Mortgage Question

ducey

I've been remortgaging my house recently and have signed up for a 5 year deal from the Westbromwich Building Society. We are possibly thinking of moving house within this period, but was wondering if we would be tied into only getting mortgages from the Westbromwich, or could we look at other companies for the amount above what our current mortgage is?

For example, our house is worth £150k. If we were to get a house for say £250k, could we get a mortgage for the extra £100k with another company, or would we be tied into the only getting a mortgage through the West Brom?

Also, would you recommend not to be tied into a 5 year fixed rate at 5.99 at the moment, or to go onto the normal Variable rate?

Thanks,
Nathan

Leon_W

You would be tied to WestBrom for any additional borrowing unless you were prepared to pay the Early Repayment Charge. The downside to this is if they are not prepared to lend you the additional amount you want at a reasonable rate you are pretty much stuck.

5.99 seems a bit steep for a 5 year fix. There are lower out there. 5.63% is the class leader but to keep on the right side of forum rules I can't say who.

As to whether to fix or not, really, that decision can only be made by you as there are advantages and disadvantages on both sides.

Regards

ducey

Thanks Leon, the rate we got was fee free, that's why it is slightly more than 5.63%.

We've only just been contacted by their solicitors so could we back out of this deal now and go on the variable rate so we can find a deal that allows us to better suit our needs?

Thanks for your advice!

Leon_W

It would depend on the size of the mortgage but the deal I mention has now got a reduced fee of £499. Free val and free legals. I would guess that you would save the fee amount over 5 years with the rate differential.

I would say that if you haven't signed anything then you are free to back out.

All the best

ducey

Thanks Leon, I'll get on the phone to West Brom tomorrow to see what options I have.

Leon_W wrote: »

It would depend on the size of the mortgage but the deal I mention has now got a reduced fee of £499. Free val and free legals. I would guess that you would save the fee amount over 5 years with the rate differential.

I would say that if you haven't signed anything then you are free to back out.

All the best

Leon_W

Hi Al Mac

It may not be a forum rule as I haven't looked !

The problem is for any broker to say this is the right deal for you with lender X could be construed as advice. And it could be completely wrong.

Therefore pretty much all the brokers here will say if a rate can be beaten by another lender, but not mention the lender in question. I happen to think that that is the correct approach to adopt.

The OP should consult with a properly qualified broker to ascertain whether any deal is suitable for their circumstances or not.

Regards

dunstonh

Martin's own rules that could apply are:

Forum users are asked to make it clear if discussing a topic they have professional knowledge of that they work in that field (but do not tout for business). However, please do not give advice. This is particularly (but not only) relevant on the Pure Money, Health, Old Style, In My Home and Is It Fair? Boards.

http://forums.moneysavingexpert.com/faq.html?faq=new_faq_item#faq_new_rules

The adviser themselves would also be putting themselves at risk of breaking FSA rules as it is impossible to comply with the requirements on a public board like this. Having been through a PIA complaint made by some upstart who reported a thread I contributed in, I am all too aware of the requirements and rules. The complaint was rejected as no rule breach took place as posts were discussion based and did not recommend any product or provider. Had I recommended a product or provider, then it would have been a rule breach.

Leon_W

Thanks dunstonh

I think your post covers all the angles.

Al Mac. Unfortunately in this day and age with a complaint around every corner, from the brokers point of view, it isn't worth the risk. I am glad you brought the point up though, because sometimes I can sense some frustration on the side of posters asking questions getting a seemingly round the houses reply from a broker. It's not because we deliberately want to go round the houses, but our hands are tied.

If the question relates to a Buy to Let or something else that is currently unregulated then I don't have a problem naming names.

Regards

glastowinebar

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.

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=6806614"][/EMAIL]

doesn't this bit cover it?

dunstonh

It's not so much the site but the FSA. They are very happy for discussion and really want to encourage it. However, if advisers are making recommendations (whether we earn from it or not) then we have to make the right disclosures and satisfy the factfinding rules and that just isnt possible.

homer_j_3

no because that took 237 pages of debate between several brokers and 1 non broker and in the end Martin came up with that.

it acts as a forewarning but does not remove our obligations to the regulation that we work within. Some brokers do mention lenders now and then but I think dunston and leon have clarified good reasons to why we shouldn't.

Without sonding above my station, it is difficult to understand some of the rules and regulations that we comply with unless you are beaten to death by them everyday.