Mortgage broker - ask me anything

Motherofcelticdragons

K_S said:

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.

Thanks for that. Hadn't realised rates were so high for other LTV. Know so many people on such low rates that I just hoped that we might be able to reduce! (and agree, expected the rate to be high for 95% LTV, and not quibbling- enabled us to get our first home in a very high, ever increasing area!)

I have NO idea as to what rates will do next year!!  What sort of things would you weigh up when considering? Recession and house market crash, I guess?? 15% rates like 1989 era? I mean, is that something brokers predict?

[Deleted User]

Does Halifax allow mortgage offer to be used for a different property?

Offer accepted on a house but a cheaper house has come on the same street.

So do they allow a completely different property in a different street and also on same street different address.

Offer valid until the end of the year and want to get the best deal with the recession coming soon. 

K_S

Motherofcelticdragons said:

K_S said:

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.

I have NO idea as to what rates will do next year!!  What sort of things would you weigh up when considering? Recession and house market crash, I guess?? 15% rates like 1989 era? I mean, is that something brokers predict?

@motherofcelticdragons Absolutely not! As a regulated mortgage adviser, it's far too risky for me to advise a course of action based on where I think interest rates will be in 2/5 years. Mainly because I have no clue where rates will be at future point in time.

Your guess is as good as mine. Looking back 10 years, I never expected interest rates to go so low and stay there for so long, and neither did I expect to see them rise so sharply in a few months.

It almost always makes more sense to fix based on the client's personal attitude towards risk, how important it is to them that their monthly payments are fixed, etc.

K_S

Stevo_safc said:

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.

@stevo_safc Is there any reason you're waiting until 19th August (by which time rates may go up again) for an appointment? Plenty of fee-free brokers listed on the MSE guidance here who should be able to answer your question and get an application in in the next few days.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

If you are with Nationwide currently, then I think you can only go direct if you need to do a product-switch which requires an ERC to be paid.

K_S

Zoe02 said:

Does Halifax allow mortgage offer to be used for a different property?

Offer accepted on a house but a cheaper house has come on the same street.

So do they allow a completely different property in a different street and also on same street different address.

Offer valid until the end of the year and want to get the best deal with the recession coming soon. 

@zoe02 From memory, it used to be possible to change the property post-offer but not any more afaik. When the property details are amended on the Halifax system, a new illustration is required and the previous product/rate is not transferable, a new rate from the current live product-guide needs to be selected.

[Deleted User]

K_S said:

Zoe02 said:

Does Halifax allow mortgage offer to be used for a different property?

Offer accepted on a house but a cheaper house has come on the same street.

So do they allow a completely different property in a different street and also on same street different address.

Offer valid until the end of the year and want to get the best deal with the recession coming soon. 

@zoe02 From memory, it used to be possible to change the property post-offer but not any more afaik. When the property details are amended on the Halifax system, a new illustration is required and the previous product/rate is not transferable, a new rate from the current live product-guide needs to be selected.

Thanks for the response, extra £100 with the new rates offered at Halifax.

Will just try to renogociate with. Current property. 

Stevo_safc

K_S said:

Stevo_safc said:

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.

@stevo_safc Is there any reason you're waiting until 19th August (by which time rates may go up again) for an appointment? Plenty of fee-free brokers listed on the MSE guidance here who should be able to answer your question and get an application in in the next few days.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

If you are with Nationwide currently, then I think you can only go direct if you need to do a product-switch which requires an ERC to be paid.

Hi. The 19th was the soonest appointment they had available and yes I'm currently with Nationwide. 

claire_deen

Hi all. If I'm progressing a mortgage application through a broker (valuation due next month) and I see a better deal with another lender online but have to apply directly without a broker... what do I do?

Do I apply for an approval in principle directly and then let the application progress along with the broker's deal or do I pause after the approval in principle I've applied for on my own and wait for feedback from the other lender's valuation?  I'm a bit confused and don't want to harm my credit score. Any help would be appreciated. Thanks all xx

simon_or

https://forums.moneysavingexpert.com/discussion/6376971/mortgage-with-old-default-and-ccj#latest

PaulSimons91 said:

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! 

K_S

ariarnia said:

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. 

@ariarnia

1. No, you'll have to stay with the same lender or remortgage the whole (main + sub-account/s) to a new lender.

2. Which fees are you referring to? If it's the ERC (early repayment charge to get out of a fix) you're talking about, you'll need to check your original mortgage offer to see what it says.

3. If you switch to a new Halifax product within 3 months of the current deal expiring, there should not be any ERC.