Remortgaging with Nationwide

E_Street_T

Hi

Our mortgage with Nationwide is running out in a soon and need some advice on remortgaging.

Details
3 year (out of 25 years) fixed rate @ 5.43% runs out end of April
£95000 borrowed with 5% deposit
House bought for £87500
Property redeveloped and now worth about £125000

I'm might be going back to university in September and want to avoid as many fees as possible when remortgaging and would like another fixed rate deal.

My question really is... how does it work?
Do they just work out a rate for repaying the remaining ammount (£85000?) over 22 years? Do we need our house officially revalued? Can I use any online mortgage calculator to compare deals?

Any help greatly appreciated.

Thanks

beecher

Is it definitely £85,000 you have left to pay? I would've thought you wouldn't have paid off £10,000 in only 3 years - have you been overpaying? I don't really get how the house was bought with a 5% deposit and yet you borrowed more than the value of the house - is part of it a secured loan?

You're probably best going to see an adviser, but beforehand you can have a look here

http://www.moneymadeclear.fsa.gov.uk/campaigns/mortgages.html
and use the calculator to input the amount you have left to pay, and the term to get a rough idea of what payments are likely to be with different deals. Maybe have a look at the moneyfacts.co.uk and have a look at the best fixed rate deals available to start with?

edit: contact Nationwide first and see what deals they can offer you first. Might work out a cheaper option if they offer a good deal.

E_Street_T

The house was on the market for 95000, we offered this then negotiated down to 87500 in light of full structural survey results. Nationwide allowed borrowing more than value of sale as work was required and in surveyor's opinion would increase value of house, got a bit complicated but all we have is a mortgage, no loan. As for the ammount left to pay, 85000 was a guess but it's something like that...

beecher

E_Street_T wrote: »

The house was on the market for 95000, we offered this then negotiated down to 87500 in light of full structural survey results. Nationwide allowed borrowing more than value of sale as work was required and in surveyor's opinion would increase value of house, got a bit complicated but all we have is a mortgage, no loan. As for the ammount left to pay, 85000 was a guess but it's something like that...

I didn't know you could do that - learn something new every day

I think you should phone Nationwide first and find out how much is left to pay (I'd guess it is closer to £90,000) - I had a quick look at their website, and they have a 5 year fixed rate at 5.63% with no fees for existing customers which sounds okay. Using that link I provided, that'd be £595.25 a month if it is £90,000 left. Obviously you'd get better advice from a broker though, so that should be your next stop I think.

E_Street_T

beecher
Cheers for advice, OH has just booked an appointment with NW for next Saturday, hopefully talking to them face-to-face will help get my head around it

beecher

You're welcome - good luck with Nationwide.

pollyanna24

I've just recently taken out a new fixed product with Nationwide. It was very straightforward. I just rang up and asked for the product I wanted. They sent out the paperwork, we signed it, sent it back and voila, on the new rate.

No need for valuations, payslips or anything.

There were a few cheaper mortgages around a couple of months ago when I applied, but they all had fees on them and we have had a few months of trouble trying to get bf's payslips, so it seemed simpler to stay with Nationwide.

Plus we overpaid a bit when we first got the mortgage and this is in a reserve pot if and when we need it.

If your mortgage is (say) £90,000 and your house is worth £125,000, then you will qualify for their 5.63% rate which is the one I took out.

If it helps, we have had our mortgage 2 years and started off at £185K, so have paid about £6K of our mortgage in that time (the overpayments might contribute slighter to that, but not a great deal I would imagine).

I use their online services and can see my mortgage amount go up daily due to interest, so maybe if you had this facility, you would be able to see exactly how much you owe.

Looking on moneysupermarket.com now (and this is only using my figures for me), Nationwide is one of the ones higher up the page which means it is one of the cheapest (for us).

Dick_here

E_Street_T wrote: »

Hi
I'm might be going back to university in September and want to avoid as many fees as possible when remortgaging and would like another fixed rate deal.

If you do, how will you pay the mortgage ?

E_Street_T

!!!!!!_here wrote: »

If you do, how will you pay the mortgage ?

Good question, I realise it'll be tight but hopefully thought of most things...
I've been saving for 2 years, will have over £12000 by sept. OH will support us, earning about £1500 after tax per month. No other debts, don't even own a cc - too tempting. Will work holidays, about 14 weeks a year for current company on reduced pro rata wage, around £400 per week.

Anything else I should consider?

Dick_here

E_Street_T wrote: »

Good question, I realise it'll be tight but hopefully thought of most things...
I've been saving for 2 years, will have over £12000 by sept. OH will support us, earning about £1500 after tax per month. No other debts, don't even own a cc - too tempting. Will work holidays, about 14 weeks a year for current company on reduced pro rata wage, around £400 per week.

Anything else I should consider?

Sounds like you're doing ok. I was thinking you were going away to uni, but I guess you'll still be living there, so no additional living expenses. Best of luck.