Mortgage broker - ask me anything

AntonDex

Hi, we have a shared ownership property we bought 4 years ago, with 50% ownership and a 90% mortgage on that. We want to staircase to 100%, our bank said we need 20K deposit, to get the mortgage for the other 50%. Do we have to wait and save up, or if we make additional payments will that lower the deposit in the future - and save us money in the meantime by lowering our monthly interest paid on the current mortgage we have? Also are we able to go to another bank and ask for a mortgage replacing the current one we have plus borrowing the money needed for the other 50%? If so are they likely to ask for 20K deposit as well? Thanks in advance

Penguin_

K_S said:

Penguin_ said:

Thanks @K_S I will do that
I was only wondering what their rates are now as a comparison of what I am on now.

@penguin_ They don't publish direct rates on the website as far as I can tell, they might if you call them. What's your LTV (or house value), and I can tell you what the intermediary rates are for product switches at the moment.

Thanks my LTV is 73%, house value is £106,625 & remaining mortgage is £77940.

K_S

Penguin_ said:

K_S said:

Penguin_ said:

Thanks @K_S I will do that
I was only wondering what their rates are now as a comparison of what I am on now.

@penguin_ They don't publish direct rates on the website as far as I can tell, they might if you call them. What's your LTV (or house value), and I can tell you what the intermediary rates are for product switches at the moment.

Thanks my LTV is 73%, house value is £106,625 & remaining mortgage is £77940.

@Penguin_ Just for comparison's sake and general information - the current Natwest intermediary no-fee product switch rates for 70% and 75% LTV mortgages are 1.99% (2 year fix) and 2.11% (5 year fix).

Penguin_

K_S said:

Penguin_ said:

K_S said:

Penguin_ said:

Thanks @K_S I will do that
I was only wondering what their rates are now as a comparison of what I am on now.

@penguin_ They don't publish direct rates on the website as far as I can tell, they might if you call them. What's your LTV (or house value), and I can tell you what the intermediary rates are for product switches at the moment.

Thanks my LTV is 73%, house value is £106,625 & remaining mortgage is £77940.

@Penguin_ Just for comparison's sake and general information - the current Natwest intermediary no-fee product switch rates for 70% and 75% LTV mortgages are 1.99% (2 year fix) and 2.11% (5 year fix).

Ah thats good, I'm currently on 4.81%.
Thank you ever so much.

K_S

AntonDex said:

Hi, we have a shared ownership property we bought 4 years ago, with 50% ownership and a 90% mortgage on that. We want to staircase to 100%, our bank said we need 20K deposit, to get the mortgage for the other 50%. Do we have to wait and save up, or if we make additional payments will that lower the deposit in the future - and save us money in the meantime by lowering our monthly interest paid on the current mortgage we have? Also are we able to go to another bank and ask for a mortgage replacing the current one we have plus borrowing the money needed for the other 50%? If so are they likely to ask for 20K deposit as well? Thanks in advance

@AntonDex If you do make overpayments and build more equity, that should reduce the cash deposit you need in the future. If your fix is ending soon, you should be able to look for remortgage options but bear in mind that the SO mortgage market high-LTV products at present is more expensive that it would have been when you bought the property in 2016/17.

Beyond that it's hard to say what options may or may not be available for you based on the limited information in your post.

Penguin_

Just to check & so I am not being completely silly in my thinking, if I do get a rate at say 2.5% with Natwest (to allow for any changes in the new year before I can switch), my new repayment would be around £308. My current payment is £399 but I pay £429, am I right in saying I will reduce the term of my mortgage greatly if I continue to pay the £429?  

K_S

Penguin_ said:

Just to check & so I am not being completely silly in my thinking, if I do get a rate at say 2.5% with Natwest (to allow for any changes in the new year before I can switch), my new repayment would be around £308. My current payment is £399 but I pay £429, am I right in saying I will reduce the term of my mortgage greatly if I continue to pay the £429?  

@Penguin_ If you overpay on a NatWest mortgage, afaik they will not reduce the term automatically, you need to call them to request that.
Just to be clear, you will still save interest over the lifetime of the mortgage by making higher than minimum payments, even if your term doesn't go down. I hope that makes sense.

Penguin_

K_S said:

Penguin_ said:

Just to check & so I am not being completely silly in my thinking, if I do get a rate at say 2.5% with Natwest (to allow for any changes in the new year before I can switch), my new repayment would be around £308. My current payment is £399 but I pay £429, am I right in saying I will reduce the term of my mortgage greatly if I continue to pay the £429?  

@Penguin_ If you overpay on a NatWest mortgage, afaik they will not reduce the term automatically, you need to call them to request that.
Just to be clear, you will still save interest over the lifetime of the mortgage by making higher than minimum payments, even if your term doesn't go down. I hope that makes sense.

Perfect! Thank you, sorry to have asked so many questions.

simone82

Does anyone know if the stamp duty holiday may be extended. Do house sales have to be fully completed before the end of March?

K_S

simone82 said:

Does anyone know if the stamp duty holiday may be extended. Do house sales have to be fully completed before the end of March?

@simone82 No one can say for sure either way. As things stand, if it doesn't get extended then yes the transaction has to have completed by March 31st 2021 at the very latest to avail of the current rates.