Higher lending Charge

homer_j_3

so the 5.79 product will cost you £100 more on the current property and the
5.09 will cost £10 less than your current payment. Is that correct?

If so with the 3k HLC you need to split this over the benefit period. If its 2 years then your "real" payment is £115 more than your current payment if you do not want to be in a worse position after the 2 years.

Therefore your current product would be cheaper over the next 2 years.

Now if you were looking at longer periods then it may be a different story. Have you spoken with a professional - if not, it may be worth an hour of your time to get some advice.

marc1977_2

I'm getting confused now! The new deal with existing is 3 years. Therefore the increase on my existing is £3600.(based on 100 per month extra) This equates to nearly the cost of new lenders HLC but over their two years fixed deal. Therefore If I take out the newdeal with the new lender, I shall have to remortgage again in two years and have an increase in my LTV due to additional HLC. This would take it to 95% again (or maybe more) which would mean ANOTHER HLC!!!
Until property prices get back to a realistic growth, I think I am stuck with not adding HLC charges for 95% mortgages to my lending. Hopefully growth will reaappear in the next three years and my LTV will get better than 95%. Then I can then source a better deal. I might add that I am considered quite creditworthy and I hope to keep it this way hence my concerns.
I have used a broker before and can really reccommend them. However the 95% bit worries me and the posts and news re mortage deals being pulled worry me greatly. I need to act now.

homer_j_3

Ok so you are comparing 2 different things.

Do not say things like realistic growth on here lol - you will get shot for saying that we have had years of unrealistic growth.

I would say your first deal looks better still if there is no HLC because you will be paying more monthly but in three years time, you will owe less as you have not added the extra 3k on to start off with.

The only thing better would be to look at other deals and cost them out.

Dan_Collins_2

If I get this right, the existing lender has offered a 3 year 5.79% fixed for 3 years. The new lender is 5.09% but a HLC of 3k. Easy stay with your lender, at 95% that is a good rate. By adding a new HLC you have added 6k on your mortgage.

MarkyMarkD

Marc

You needed to get a grip and listen to some of the advice you are being given. I think from your last post that you've now done so - well done!

Not all lenders charge HLC, even for 95% loans.

You didn't get "stitched up" with an HLC when you moved; you chose to take your LTV over 90% and that's why you were charged an HLC.

As you've been advised, you shouldn't be considering any new deal with another HLC unless it's incredibly cheaper than you are currently paying.

£3k of HLC over 2 years is roughly £125 per month. So it's not worth taking any loan with such an HLC unless you will save more than £125 a month, which is very unlikely.

I think you need to stay where you are and take the best deal your current lender will give you.