Re-mortgage advice please.

dekh

Is the £1200 just the arrangement fee? Does it include the conveyancing?

Have a look in the 'quality' Sunday papers, I'm not an FSA so don't know if these are good or not but the raw figures look better these are fixed rate and they claim no extended tie-ins...

Cumberland BS 5.28% to 1.3.10 95% £995
Derbyshire BS 5.29% to 31.7.10 95% £999
Newcastle BS 5.55% to 31.5.11 90% £699
Derbyshire BS 5.48% to 31.7.13 95% £999
Norwich & P'boro BS 5.58% for 10 years 90% £495

Check their websites out see what they've got.

But you will probably have conveyancing fees on top.

Is it the right time to be switching off variable rates? I know there are all these noises about no more interest rate cuts but it'll be interesting to see the Bank of England voting next month. This month 2 of the nine members voted for a 25 point cut. In January only 1 voted for a cut followed by a .25 cut in February.

homer_j_3

Yes, the preferential rate payment is £398. The SVR payment is £458.

I have just used a mortgage calculator with:

19 yrs @5.69% borrowing 61100 and it has come back at £439.

They A&L have offered £426. with these details. Is the calculator wrong? No - its because it is treating the loan as a 19 year loan rather than a 25yr (or whatever it was originally) with 6 years of service paid as such.

The debt and term are the same so the calculation should be the same but they never are. Whilst I openly admit ,I cannot quite get my head around this, I know that all I need to do is look at the payments that the lender is quoting to work out whether a better deal can be done.

beecher

dekh wrote: »

Is the £1200 just the arrangement fee? Does it include the conveyancing?
.

the OP has her mortgage with alliance&leicester so there would be no conveyancing to pay.

I wouldn't want to bet on rates going down - inflation is going to be a huge problem in the coming months, when you look at fuel/food prices. Mervyn King seems to be more concerned with keeping inflation down than with trying to boost house prices.

beecher

homer_j wrote: »

The debt and term are the same so the calculation should be the same but they never are. Whilst I openly admit ,I cannot quite get my head around this, I know that all I need to do is look at the payments that the lender is quoting to work out whether a better deal can be done.

That's interesting, if confusing! Thanks for that.

dekh

beecher wrote: »

the OP has her mortgage with alliance&leicester so there would be no conveyancing to pay.

I wouldn't want to bet on rates going down - inflation is going to be a huge problem in the coming months, when you look at fuel/food prices. Mervyn King seems to be more concerned with keeping inflation down than with trying to boost house prices.

True, if she stays, there shouldn't be extra on top of the £1200, if she moves to another lender there may be offers that include conveyancing fees.

The next rate announcement is on April 10th, we'll see what the voting is like then. Of course, BoE cuts aren't necessarily passed on in a timely fashion to customers... If at all

top4718

If I decide to seek advice, where is the best source, I had a bad experience with MortgageTalk, where I was pushed towards a company which the advisor receives comission from.

beecher

Found this elsewhere,

http://www.nationwide.co.uk/intermediaries/latest-news/mortgage_rates280308.htm

Nationwide Product News



Product News
27th March 2008

Nationwide Changes to Mortgage Rates effective 28th March 2008

In Summary
We are making the following changes to our mortgage products with effect from 28th March 2008.

Withdrawal of selected 2 year tracker and 2 year fixed rate products
All fixed rate product rates increased by 0.20%
Selected tracker products increased by 0.51% and 0.57%
Don't forget, products can be reserved online through our e trading website or via MTE (Mortgage Trading Exchange) until 5pm 27th March 2008.

Full details of the changes are listed below. All other products and rates remain the same.

We have recently been experiencing large numbers of mortgage applications and with recent competitor changes this is likely to increase. However, as a prudent institution we have to manage our business volumes, and focus continues to be on quality, not market share.


Product Withdrawals
House Purchase

Product Withdrawn from Reservation fee - new business Max 75% LTV Max 90% LTV
2 Year Tracker 27 March 2008 No fee 6.23% 6.43%
2 Year Tracker 27 March 2008 £1,499 5.73% 5.93%
2 Year Fixed 27 March 2008 £1,499 5.58% 5.78%

Non-House Purchase (Remortgage / deal switchers / additional borrowing)

Product Withdrawn from Reservation fee - new business Max 75% LTV Max 90% LTV
2 Year Tracker 27 March 2008 No fee 6.38% 6.58%
2 Year Tracker 27 March 2008 £1,499 5.78% 5.98%
2 Year Fixed 27 March 2008 £1,999 5.58% 5.78%

Reprice of Fixed Rate and Tracker Product Range

House Purchase

Product Effective from Effective from Effective from Effective from Effective from
2 Year Tracker 28 March 2008 £599 6.40% 6.60% 7.00%
Lifetime Tracker 28 March 2008 No fee 6.59% 6.79% N/A
2 Year Fixed Opt A 28 March 2008 £499 5.95% 6.15% 6.65%
2 Year Fixed Opt B 28 March 2008 £999 5.82% 6.02% 6.52%
2 Year Fixed 28 March 2008 No fee 6.35% 6.55% 7.05%
3 Year Fixed 28 March 2008 £499 5.95% 6.15% 6.65%
5 Year Fixed 28 March 2008 £499 5.83% 6.03% 6.43%
10 Year Fixed 28 March 2008 £499 5.88% 6.08% 6.48%
25 Year Fixed 28 March 2008 £599 6.18% 6.38% 6.78%

Non-House Purchase (Remortgage / deal switchers / additional borrowing)

Effective from Effective from Effective from Effective from Effective from Effective from
2 Year Tracker 28 March 2008 £599 6.50% 6.70% 7.10%
Lifetime Tracker 28 March 2008 No fee 6.69% 6.89% N/A
2 Year Fixed Opt A 28 March 2008 £499 6.18% 6.38% 6.88%
2 Year Fixed Opt B 28 March 2008 £999 5.98% 6.18% 6.68%
2 Year Fixed 28 March 2008 No fee 6.58% 6.78% 7.28%
3 Year Fixed 28 March 2008 £499 6.18% 6.38% 6.88%
5 Year Fixed 28 March 2008 £499 5.83% 6.03% 6.43%
10 Year Fixed 28 March 2008 £499 5.88% 6.08% 6.48%
25 Year Fixed 28 March 2008 £599 6.18% 6.38% 6.78%

homer_j_3

top4718 wrote: »

If I decide to seek advice, where is the best source, I had a bad experience with MortgageTalk, where I was pushed towards a company which the advisor receives comission from.

Ask friends and family for recommendations firstly. You can always look on ubiased.co.uk (they are IFA's rathere than Mortgage Advisers in the pure sense) or you could look in local business directories?

maddie2750

Cheers for the Nationwide info beecher, I was going to wait til next week to sort out the 5-year fix at 5.63% but have just managed to sort it out this afternoon before it goes up tomorrow.

I owe you one! :beer:

beecher

maddie2750 wrote: »

Cheers for the Nationwide info beecher, I was going to wait til next week to sort out the 5-year fix at 5.63% but have just managed to sort it out this afternoon before it goes up tomorrow.

I owe you one! :beer:

I'm really glad about that - well done