Mortgage broker - ask me anything

SuseOrm

Do kent reliance offer normal mortgages that i could move to at the end of my fixed rate ?  I no longer need the sub prime lending,  the issue is fixed.  Dont want their stand variable obviously,  would like to avoid the remortgage process though.  Thank you 

davetherave85

When my fixed term ends with santander and I go on to the follow on rate can I ask them for a product change without verifying all income again? Or do I go through the whole process again? Thanks!

K_S

@davetherave85 Can't speak for your specific case but generally speaking the answer to your question is Yes. Is there any particular reason you want to wait till you go on the SVR before selecting a product? With Santander you should be able to book in a new product up to 4 months before the end of the fix.

davetherave85 said:

When my fixed term ends with santander and I go on to the follow on rate can I ask them for a product change without verifying all income again? Or do I go through the whole process again? Thanks!

davetherave85

K_S said:

@davetherave85 Can't speak for your specific case but generally speaking the answer to your question is Yes. Is there any particular reason you want to wait till you go on the SVR before selecting a product? With Santander you should be able to book in a new product up to 4 months before the end of the fix.

davetherave85 said:

When my fixed term ends with santander and I go on to the follow on rate can I ask them for a product change without verifying all income again? Or do I go through the whole process again? Thanks!

Thanks for the response. I am just thinking in advance when my fixed ends if I will need to go through proving income again despite making every payment on time. I am self employed so trying to plan ahead.

so if applying for new product 4 months before if staying with Santander they won’t ask for accountants cert, bank statements etc again?

thanks! 

K_S

@davetherave85 Sorry, reading it back my answer doesn't make sense

If you're staying with Santander, not borrowing any more, not changing the term, then there should be no income checks, affordability checks, credit checks, etc. to select a new product.

davetherave85 said:

K_S said:

@davetherave85 Can't speak for your specific case but generally speaking the answer to your question is Yes. Is there any particular reason you want to wait till you go on the SVR before selecting a product? With Santander you should be able to book in a new product up to 4 months before the end of the fix.

davetherave85 said:

When my fixed term ends with santander and I go on to the follow on rate can I ask them for a product change without verifying all income again? Or do I go through the whole process again? Thanks!

Thanks for the response. I am just thinking in advance when my fixed ends if I will need to go through proving income again despite making every payment on time. I am self employed so trying to plan ahead.

so if applying for new product 4 months before if staying with Santander they won’t ask for accountants cert, bank statements etc again?

thanks! 

Penguin_

Have started to speak to a broker who thinks we won't have a problem with getting a Mortgage but obviously will not be with a High Street lender. We should have £40,000 deposit & may only be looking for about £140,000 to £155,000.  

musntcrumble

Looking at switch fixing with HSBC for another 2 or 3 years.

Remaining mortgage around £240,000.

2 year rate is 4.43% with £999 product fee so around £1360 monthly payments, or 2 year saver (without fee) is 4.69% so around £1395 monthly over 21 payments.

3 year rate is 4.34% with £999 product fee so around £1350 monthly payments, or 3 year saver (without fee) is 4.64% so around £1390 monthly over 33 payments

How do I best decide on whether to go with the saver or product fee?  What's the maths I need to be doing to work this out?

Someone has suggested if it's not saving you any money take the saver over the product fee.

Any assistance in helping to decide would be much appreciated.

silvercar

Be cheaper to take the lower rate and pay the £999 in both cases.

if you want the maths:

for the 2 year, you are saving 4.69-4.43=0.26% on your 240,000 mortgage each year ie £624, so after 1 year and 7 months you will have saved the £999.

for the 3 year, 4.64-4.34=0.3% which is £720. Will take you 1yr and a bit less than 5 months to recoup the 999 after which you are quids ahead,

musntcrumble

Thanks - that's really helpful.

Follow up question.  If I took the higher rate (of the 2), but overpaid the equivalent of the product fee on the first day of the higher rate kicking, does it make a difference?

Thanks again.

silvercar

musntcrumble said:

Thanks - that's really helpful.

Follow up question.  If I took the higher rate (of the 2), but overpaid the equivalent of the product fee on the first day of the higher rate kicking, does it make a difference?

Thanks again.

For the 2 year, you would then be saving only £46.85 of interest (999 x 4.65%) each year, which is much smaller than the £624 you would have saved by taking the lower rate. Similarly for the 3 year. 

(On a repayment mortgage the figures vary slightly but not significantly so the answer is the same.)