Mortgage broker - ask me anything

strawberryfield2233

Hi we have been scratching our heads on what to do about our mortgage any thoughts appreciated.
- Halifax Mortgage (formerly Tesco 5yr fix 1.83% ending 30/11/22 overpayments 20% allowed). Circa 55k balance currently.
- Strong possibility we maybe in a position to pay off mortgage within months of fix ending but most likely mid 2023. I am disabled so we rely on husbands income, clean credit score etc.
- we do have savings could use to pay down mortgage a bit but need to keep money for emergencies boiler/car etc

As our mortgage is not big, know that remortgaging may not be viable/difficult to find a suitable product fees free which allows ERC’s. But considering the BOE rate forecasts which are not good at all not sure if we should actually do it anyway but only mortgages I could find were from First Direct & Nationwide. Think may have been 2 yr trackers.

or look at product transfer at Halifax though not sure there would be anything suitable that would be no ERC’s etc

or suck up the rate rise to halifax SVR after 30/11/22 and just pay down what we feel comfortable with until can pay off.

Any thoughts I would be grateful please

strawberryfield2233

—- also should have put our mortgage is on a house value circa 300k so LTV is ok

K_S

strawberryfield2233 said:

Hi we have been scratching our heads on what to do about our mortgage any thoughts appreciated.
- Halifax Mortgage (formerly Tesco 5yr fix 1.83% ending 30/11/22 overpayments 20% allowed). Circa 55k balance currently.
- Strong possibility we maybe in a position to pay off mortgage within months of fix ending but most likely mid 2023. I am disabled so we rely on husbands income, clean credit score etc.
- we do have savings could use to pay down mortgage a bit but need to keep money for emergencies boiler/car etc

As our mortgage is not big, know that remortgaging may not be viable/difficult to find a suitable product fees free which allows ERC’s. But considering the BOE rate forecasts which are not good at all not sure if we should actually do it anyway but only mortgages I could find were from First Direct & Nationwide. Think may have been 2 yr trackers.

or look at product transfer at Halifax though not sure there would be anything suitable that would be no ERC’s etc

or suck up the rate rise to halifax SVR after 30/11/22 and just pay down what we feel comfortable with until can pay off.

Any thoughts I would be grateful please

@strawberryfield2233 Given that it's only 55k and you expect to pay it off within a year or so, sounds like you're on the right track by considering a mainstream no-fee no-ERC tracker/discount product. Halifax does not offer any ERC-free PT products afaik.

I don't about FD but I'm pretty confident that Nationwide does offer a no-fee tracker product for a 55k loan size.

strawberryfield2233

K_S said:

strawberryfield2233 said:

Hi we have been scratching our heads on what to do about our mortgage any thoughts appreciated.
- Halifax Mortgage (formerly Tesco 5yr fix 1.83% ending 30/11/22 overpayments 20% allowed). Circa 55k balance currently.
- Strong possibility we maybe in a position to pay off mortgage within months of fix ending but most likely mid 2023. I am disabled so we rely on husbands income, clean credit score etc.
- we do have savings could use to pay down mortgage a bit but need to keep money for emergencies boiler/car etc

As our mortgage is not big, know that remortgaging may not be viable/difficult to find a suitable product fees free which allows ERC’s. But considering the BOE rate forecasts which are not good at all not sure if we should actually do it anyway but only mortgages I could find were from First Direct & Nationwide. Think may have been 2 yr trackers.

or look at product transfer at Halifax though not sure there would be anything suitable that would be no ERC’s etc

or suck up the rate rise to halifax SVR after 30/11/22 and just pay down what we feel comfortable with until can pay off.

Any thoughts I would be grateful please

@strawberryfield2233 Given that it's only 55k and you expect to pay it off within a year or so, sounds like you're on the right track by considering a mainstream no-fee no-ERC tracker/discount product. Halifax does not offer any ERC-free PT products afaik.

I don't about FD but I'm pretty confident that Nationwide does offer a no-fee tracker product for a 55k loan size.

Thank you so much that is very helpful 🙂

Motherofcelticdragons

I'd like some broker advice please!

We got a 2 year fixed 95% mortgage at 3.74% in June 2021 (so just passed the first year). We live in London so whilst that sounds outrageous for interest etc, the time it would have taken to save the extra 5%, plus stamp duty (avoided by a month or so!) it felt that it would be worth it. 

However, I have had a minor pay rise, and also another decent bonus paid (think they took a 3 year average when we did the mortgage app), so between those increases, and the apparent increase in properties locally (big pinch of salt obviously but apparently we're looking at a 70k odd increase), I wondered if its worth looking at a remortgage early, to attempt to reduce monthly payments based on additionally borrowing power (dunno if that matters?) and bigger LTV

Or alternatively, to release capital and possibly consider an extension... but I think I'd rather just pay less and save for that.

There is obviously an early remortgage fee so that would need to be consider over the next year's worth of current payments.

Any thoughts from brokers? 

thanks,

Karis 

K_S

Motherofcelticdragons said:

I'd like some broker advice please!

We got a 2 year fixed 95% mortgage at 3.74% in June 2021 (so just passed the first year). We live in London so whilst that sounds outrageous for interest etc, the time it would have taken to save the extra 5%, plus stamp duty (avoided by a month or so!) it felt that it would be worth it. 

However, I have had a minor pay rise, and also another decent bonus paid (think they took a 3 year average when we did the mortgage app), so between those increases, and the apparent increase in properties locally (big pinch of salt obviously but apparently we're looking at a 70k odd increase), I wondered if its worth looking at a remortgage early, to attempt to reduce monthly payments based on additionally borrowing power (dunno if that matters?) and bigger LTV

Or alternatively, to release capital and possibly consider an extension... but I think I'd rather just pay less and save for that.

There is obviously an early remortgage fee so that would need to be consider over the next year's worth of current payments.

Any thoughts from brokers? 

thanks,

Karis 

@motherofcelticdragons That's not really outrageous for interest rates for a 95% LTV product in mid 2021. Off of the top of my head, that was quite normal for that period.

Rates have moved on a lot though since then, so your better LTV now is unlikely to mean a huge saving. For example, the lowest Skipton 75% LTV remo rate today is 3.75% for a 5 year fix, Nationwide is 3.69%. So there's unlikely to be a saving right away simply because of re-mortgaging to a lower LTV.

However, if you think that rates next year are going to be much higher than today, and you would sleep better having fixed for 5 years, then it might make sense to consider paying an ERC and remortgaging.

ariarnia

can i ask three basic questions?

1. can you remortgage part of a mortgage with a new lender when a fix on a sub-account ends or do you have to go with the same lender if you're not moving both products/wait for both fixes to end? 

2. can someone give me ball park fees we should expect if we wanted to fix until Jan 2027? 

3. would those fees still apply if we were to switch to a new fix with our existing lender (halifax) via our online banking account (we can't access that part of the site until 3 months before our deal expires)?


dont know what info you need so i know this is probably too much.

total mortgage 104k
house 'value' according to the bank £169.6k (ltv 61%)
mortgage term (for both accounts) 18 years ish

account 1 fix ending march 2023 balance £87k @ 1.44% 
account 2 fix ending jan 2027 balance £17k @ 1.93%

currently paying £867 per month (£300 overpayment) could comfortably increase this by upto £500 a month but would slow down the remaining renovations so there'd have to be a reason.

no credit history issues for either of us but we do have highish balances on our credit card (8k at 0%) atm because of urgent renovation work and wanting the section 75 protection. should be paid down quite a lot by January. 

thank you. 

Stevo_safc

Our 5 year fix at 2.54% ends March 2024, and the mortgage itself is due to be paid up in March 2027. Ideally want to get a new deal fixed until the March 2027 to beat any future rises.

A quick check on the Nationwide website gives interest rate of 3.44%. There'll be about £500 ERC to pay if we switch deal, got an appointment on the 19th August to see if its worth it or not.

PaulSimons91

Hi everyone,

Just trying to get some advice. I have been looking online but can't really find useful information.

Basically after mismanaging debt stupidly when young I am left with 4 defaults that are 4 and a half years old and 2 ccj's (one for 2000 FEB 2021 and one for 1300 MAR 2021).

I am fortunate to be recieving inheritance which I will use to satisfy the ccj's ( I am also getting advice if I can claim to have them set aside as I wasn't living in the country at the time and they were judgements in default)

My partner has a good credit history with a salary of 20000 and my salary is 40000

The deposit I have is around 60000-70000 if needs be.

We're probably going to look for a house mid way through next year.

Does anyone believe I will be able to obtain a mortgage in my situation.

Thanks in advance! 

Newmum92

Hi everyone 

Just after some advice. Yesterday I did a rate switch with my bank to a 3 year fix for 3.22% which means a £65 increase in repayments.

I’m getting cold feed - should I have fixed for longer? We definitely want to move house in 3-4 years when our credit files are looking a bit better so was worried about any charges if we went for a longer fix… but obviously with the BOE increase I’m worried 3 years isn’t enough. What do people think??