Remortgage

arrows123

Trying to decide what to do… my 5yr fixed term mortgage ends in October. Currently on 1.35% (wishing I took out 10 years but thats hindsight!) … I’m a sole company director for my limited company. Mortgage currently with virgin money, ideally I’d do a product transfer but earliest I can do this is June. Virgin money was also taken over by nationwide this month so I assume any product transfer would be with them going forward. I’ve already asked the question if this option will be available because of the switch and they’ve said yes nothing will change. Currently rates for product transfer look like they will be around 4.6% which will be a jump of £300 plus a month.

Obviously things are volatile at the moment and mortgage rates have increased almost a percent in the last few weeks which equates to an extra £100 a month for when I renew. They could go higher before June.

Do I see a mortgage broker now to see if I can get something tied in as backup in case rates go up even more?

Only thing with this is obvs would be full application. My company profits have reduced approx 25% for my last financial year which ended end of March. Accounts are not done for this and prob won’t be for at least a couple of months. Company has decent retained profits which has meant I’m still able to take the £50k a year in salary and dividends and this should remain for the next couple of years at least even if profits continue at current levels. I do expect profits to go up, I know the reasons for the drop and have plans in place to increase. My original app five years ago wanted company accounts to go through, but I have seen that some lenders are fine using the self assessment and my own income instead of going through company accounts.

I have personal savings which mean I could overpay approx £20k but keen not to do this atm until I can be assured I can increase profits with my company. The monthly increase I can cope with but just trying to work out the smart thing to do. Is it a risk to wait until June and just do product transfer or should I proactively be contacting a broker and going through the company accounts/paperwork hassle to get something locked in as an option just in case the world gets worse in the next 2-3 months?

Figures in Oct will be

House value - 360k

Mortgage balance - 185k

No debt.

Term left 29 years (cannot increase this as already takes me to 74… plan is to overpay in the next few years anyway to bring it down).

Also my original plan was to take a 5yr fixed again for security as I was expecting around a 3.8% rate but thinking maybe a 3yr now thinking they will come down a bit from current rates and also to concentrate on overpaying these next three years.

TroubledTarts

Sameish boat we stayed with current lender on a product with no upfront fees 2 year fix so as to hopefully see these world issues through and look again for June 2028.

The beauty of same lender was no survey or proof of income just an instant accept.

RelievedSheff

You have a little while before you need to make any decisions on this, October is a way off yet. You might be better off just sitting tight for a month or two and see how the current situation settles down take a decision nearer the time.

la531983

If staying with the same lender, on the same length, with no extra borrowing, its generally a case of pressing a few buttons in the app up to 3 months before current rate expires. No need to get bogged down in a full""remortgage" if you dont need to.