Mortgage broker - ask me anything

headcrash27

Hi, 
We took out a 5 year fix with Natwest in September 2019.  We are hoping to move when it comes to an end and so were expecting this to be September 2024 however having checked our documents it seems the fix ends In January 2025 which is a few months over 5 years. Is this common for a 5 year fix to not be exactly 5 years or could this be an error?

K_S

headcrash27 said:

Hi, 
We took out a 5 year fix with Natwest in September 2019.  We are hoping to move when it comes to an end and so were expecting this to be September 2024 however having checked our documents it seems the fix ends In January 2025 which is a few months over 5 years. Is this common for a 5 year fix to not be exactly 5 years or could this be an error?

@headcrash27 Yes it is common for 2/3/5yr fixes to be slightly longer (or even shorter if completion has been delayed and/or the offer has been extended) than 2/3/5 years as it depends on the lender product details.

A minority of lenders (eg: Nationwide) offer a true fixed length so exactly 24/36/60 months after completion while the majority of lenders (including NatWest) have a fixed product end-date which will be close to 5 years but may not line up exactly.

druan7

I’m just after some clarity. I have a credit card with Aqua which I was in arrears on in 2019, and the outstanding balance is managed by Wescot now (Wescot haven’t bought the debt, they only manage the payments).

There are no arrangement to pay markers on any of my credit reports, it’s not defaulted and it shows as completely up to date and no payments missed since 2019.

However, am I correct in thinking that this still counts as a debt management plan? I’m hoping it doesn’t because I think I’m potentially within the Natwest lending criteria outside of this, but I’m fairly certain it will.

bluemonday3

Can you re-mortgage with another provider if you have a charging order on the property? 

K_S

bluemonday3 said:

Can you re-mortgage with another provider if you have a charging order on the property? 

@bluemonday3 Afaik (and I'm not a solicitor so not an expert) the new lender will require 'clear title' meaning that all charges over the property will need to removed by paying them off.

So I'd say probably not unless you intend to use some of the proceeds of the remortgage to pay off the charge.

bluemonday3

thank you for your message

dezpaula

Our fixed rate ends in July this year, currently 2.46%. There will be 10 yrs remaining. Our lender has offered us 4.4% on 5 yr fix. Thier current variable rate is 7%. if I don't get a new deal. 
 Question is , do you think I should take the 4.4% offer or hang fire and hope the rates drop back down. I appreciate that nobody has a crystal 🔮 ball. Thanks for any advice.

K_S

dezpaula said:

Our fixed rate ends in July this year, currently 2.46%. There will be 10 yrs remaining. Our lender has offered us 4.4% on 5 yr fix. Thier current variable rate is 7%. if I don't get a new deal. 
 Question is , do you think I should take the 4.4% offer or hang fire and hope the rates drop back down. I appreciate that nobody has a crystal 🔮 ball. Thanks for any advice.

@dezpaula Can't say what will turn out best in hindsight but generally speaking for a client in your situation - where the currently offered PT (product-switch/product-transfer/rate-switch) rate was the best available (or close) - 

If the PT rate was cancellable (not all lenders will allow you to cancel a PT) and/or seamlessly changeable to a lower rate if the lender reduced rates later (some lenders will have a few hoops to jump through such as going on SVR for a month) then I'd usually end up reserving a PT and then scanning the market until a month or so before completion and remortgaging away if a noticeably better rate came along.

If the PT was not cancellable then as long as the client is happy with being locked in I'll do the PT. Otherwise if there's a slightly better or equivalent remortgage rate with another lender I'd do that and then scan the market until completion for any noticeably better rates. 

Just to be clear the above is a general comment on PT options and not specific to your situation.

InAPickle76

We are looking to remortgage as we are with The One Account and the interest seems to be going up every month!! We had a DMP back in October 2014 originally with StepChange then went self managed about 3 years ago which is all going really well.

My concern is that when the mortgage company asks for the past 3 months' bank statements it is going to show all the payments to the creditors (we have 8 in total (with 3 different creditors) paying £5 per month) even though the defaults have all dropped off our credit files and our credit scores are now excellent. 

Is there anything we can do?? Will the lenders be likely to decline us due to the ongoing creditor payments on our bank statements?

Many thanks for reading 

evosy1978

Hi.  Me and the ex have a mortgage which has 10 years left.  I want to buy her out.   Nationwide have said i can remove her from the mortgage after they have checked my affordability and i pay a fee etc.  But i will need another £60,000 to pay her. Will they let me take out a new mortgage for the money i need and also keep my current mortgage? Instead of remortgaging.  The current mortgage is only 2% and has 5 years fixed left... cheers