Mortgage broker - ask me anything

jonnym1985

K_S said:

@jonnym1985 With a Barclays new build extension you can keep the older lower rate. It's an established process so nothing to worry about.

End date of fix - With Barclays it's a fixed end date for the specific product which you can see on page 3 of your offer. For example if you applied for a 5yr fix around April-May the date would probably be 31/08/2027.

jonnym1985 said:

Hi K_S

We have a mortgage offer from Barclays offer valid till 29th January 2023, with the new build expected to complete in February 2023. I have already discussed the extension process with both yourself and my broker and have a further question as I read an earlier post relating to Barclays extension.

My broker stated that the current rates have been locked at 3.57% but having read this forum I’ve seen conflicting information, that the extension will offered on a new product rate which is current 6.62%

Can you advise which rates would apply, the original or the newer rate?

many thanks 

jonnym1985 said:

In relation to the above query, does the 60 month period start from date of offer or from date of completion?

thanks

Great advice as always. Thanks once again 👍🏻👍🏻

Edit: page 3 states 30/11/2027 😁

chelseablue

Our fixed rate of 1.79% expires soon and I’m seeing that discount rate mortgages are lower than fixes. 

I’m thinking of going for a discounted rate instead of a fix or is that a bad idea? 

MFWannabe

Sam3007 said:

Hi, my 2.06 fixed mortgage ends in Jan 24. I have read that remortgage rates could hit 6 or 7 % next year. It is a good idea to get a personal loan at 4.3 now to overpay before the end of this year (get the 10% overpayment limit) and then overpay as much as I can next year to reduce the balance? I have got mixed opinions about this. 

Just overpay the mortgage each month by what the loan would have cost? Or save in a higher interest rate than your current mortgage rate and pay that off in 12 months time 

missplant

Hello,
 I was meant to exchange contracts on my new property on Friday. 

however when the solicitor double checked to see if we had our mortgage extension there was no funds to draw down. This is with Halifax, we have now been told it will take 2-3 working days for a new product to be uploaded onto their system. 

Does anyone know if this new product will be at a new and higher interest rate? 

My mortgage broker isn’t responding to either myself or the solicitor.

thank you 

K_S

missplant said:

Hello,
 I was meant to exchange contracts on my new property on Friday. 

however when the solicitor double checked to see if we had our mortgage extension there was no funds to draw down. This is with Halifax, we have now been told it will take 2-3 working days for a new product to be uploaded onto their system. 

Does anyone know if this new product will be at a new and higher interest rate? 

My mortgage broker isn’t responding to either myself or the solicitor.

thank you 

@missplant If the solicitor applied for the one-month extension that Halifax was offering for offers expiring 30/09, it'll be at the same rate.

missplant

K_S said:

missplant said:

Hello,
 I was meant to exchange contracts on my new property on Friday. 

however when the solicitor double checked to see if we had our mortgage extension there was no funds to draw down. This is with Halifax, we have now been told it will take 2-3 working days for a new product to be uploaded onto their system. 

Does anyone know if this new product will be at a new and higher interest rate? 

My mortgage broker isn’t responding to either myself or the solicitor.

thank you 

@missplant If the solicitor applied for the one-month extension that Halifax was offering for offers expiring 30/09, it'll be at the same rate.

Thank you 

kazzyb123

Hi,

if I take out a 5 year fixed rate mortgage do you know the percentage for early repayment charges if we move and decide to remortgage after 2 years?

it will probably be NatWest but is it roughly the same for all lenders? Thanks 

K_S

kazzyb123 said:

Hi,

if I take out a 5 year fixed rate mortgage do you know the percentage for early repayment charges if we move and decide to remortgage after 2 years?

it will probably be NatWest but is it roughly the same for all lenders? Thanks 

@kazzyb123 It differs across lenders and products. For NatWest it could be (please confirm on your illustration) a sliding scale from 4.5% in year 1 to 1% in year 5, for others a flat x% until the final day of the fix, for others a pro-rated 1% per year remaining on the fix, etc.

With most mainstream lenders, you will have the option to apply to port the fix to the new property so you can avoid paying an ERC.

Wanderingbear

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Looking for some advise pls. I have a low mortgage of £35k which is currently on fixed rate 1.79% due to end in Jan. Looking to fix again for 2yrs at 6.14% or maybe fall onto follow on rate. My question is I am able to pay a 10% overpayment off befor the cheap fixed rate ends, which equate to £4200. Would I benefit more savings from paying this off before I move to higher rate or paying it off after? 

pjm2002

Hi there, 

Newbie, and really struggling with uncertainty on taking out a new mortgage product after several years on a 2.09% rate. I tried to carefully weigh up the options - either pay circa 6-65% as a guaranteed fixed term, or switch to a tracker for two years at 1.39%.  I chose the latter less than a week ago, but even in that time circumstances have changed so much, and I know feel as though the rise of the base rate will take us to well over 7% in total by next summer. So my worries are:

- Can I cancel the product I chose? I've had my offer in writing but there is no definition on a withdrawal period on my part (I paid no fees for the product so don't have to worry about this)
- If I review the options today vs a week ago, is there a chance the fixed term guarantee will end up being less than whatever mess the base rate will end up as by next Spring?

I get that it's a two-year tracker, so not potentially long enough to push us into financial ruin, but I'm really worried about whether I've made a really bad choice AND equally worried about pulling that offer and choosing something worse. I do appreciate these things are all balanced on very fine detail and the margins are small, and it's so difficult to know for sure. What would be your advice in this situation (on a general level).