Help please - broker said to renew ourselves as couldn't help!

yummymummywales

Hi All,

Just wondering if I could pick the brains of you educated lot out there please?!

Been to see our financial advisor today about the deals out there but he said that he couldn't deal with a lot of the best deals and to get out there and see what was about - I thought I would chat to everyone else first!

Currently on Alliance and Leicester fixed rate from 2 years ago which was 4.59% (hindsight is a wonderful thing!), and goes onto SVR when this expires on 30th June.

LTV of property is about 58% so I was wondering if the deals out there at the moment with the Woolwich who seem to offer better deals if the LTV is less than 60% seem a good deal? Currently 3yr fixed is 5.49% and 5yr fixed is 5.99%. We don't have much scope to pay for any future rises and so fixed rate seems the only way forward at the moment. (don't understand these offset things anyway)

Love our house, am not moving anywhere as far as we can tell (!), does this sound like a good deal to anyone?

Can't afford a total repayment mortgage yet until both kids go to school instead of nursery (about 3yrs away), so have options of either interest-only and making approx £200/month overpayments or picking a part and part and setting the repayment up to that figure - does it matter which one I pick to the eventual outcome?

Sorry to ask so many questions but I just thought someone may offer some valuable advice or tell me if I am missing something obvious!

Many thanks to everyone

James_H

The thing I would note is how confident are you about the 58% LTV - you know the outstanding mortgage but not what the valuer will value you house at. If your guessed value is pessimistic you may be ok, but the valuer only needs to be four percent down on your estimate and a 60% max LTV offer will not cover your existing mortgage. On the other hand, a max 75% or more deal may be a safer option for the lender and therefore may be an easier product for you to apply for.

mightymouse

Hi

I noted this for info.......from mortgage strategy 9th April 08 link http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=162740

HSBC is set to exploit the gap in competitive deals left in the market after the serial product repricing by lenders of recent weeks.

HSBC, which deals directly with borrowers and could cut out customers' needs to use brokers to find cheap products, may offer fixed rates as low as 4.5%.

Martijn Van Der Heijden, head of mortgages for HSBC, says: “Many home owners are worried about their monthly repayments going up and we can help take away that anxiety.

"Rate Matcher helps customers plan budgets over the medium term and eases the shock of seeking new borrowing when old rates expire. We're pleased to be in a position to help."

spoke too soon see http://forums.moneysavingexpert.com/showthread.html?t=853283

ukwoody

If the broker has told you he cannot deal with most of the best deals, that suggests he may have limited access to the mortgage market place. Find an independent, Whole of Market, Fee Free, broker. Most of whom should still be more than able to help you at this difficult time especially with the low LTV you have. My partner is a broker, and the rates are changing daily so it is nightmare at the moment and I'm sure others will agree that you should act sooner rather than later in trying to sort this out. It is also now it is more important then every to get good independent advice.

As for the HSBC offer, 1stly the first week is for their cusomers only. 2ndly they will be inundated with requests - and many are questioning how they will cope especially as they have very few staff who normally deal with the applications. The rates are good, and they will be able to cherry pick the best customers and with that kind of LTv you may be one of them - but I'll bet you Ten Bob (my moneys save then, haha) you'll struggle to get an appointment.

Woody

Trollfever

And some more info:

http://www.moneymadeclear.fsa.gov.uk/campaigns/mortgages.html

firesidemaid

you can also have a look at some of the 'best buy' tables in the weekend newspapers and online.

you need to decide how long you want to fix over. there will be fees with all mortgages, and you will need to work out the true cost of each mortgage based on the fees and the actual rate.

try not to add the fees to the mortgage as you will only pay interest on them. most mortgages let you overpay by 10% a year - just check the smallprint on this.

to guarantee you are paying some capital off, you could make the term longer (30, 35 years etc) - you could then reduce this when you have more money available.

dunstonh

It could be that the broker didnt want to deal with you as you are asking to do what is now classed as a high risk transaction. If he is employed or not whole of market/independent he may have rules preventing him for doing interest only with no repayment vehicle or abilty to repay in future.

yummymummywales

Thanks guys for all your advice - just proves I haven't got a clue about it all!

Our broker was happy to sort out an interest only mortgage but just thought there were better deals out there.

I am gutted to hear about HSBC withdrawing the 4.99% offer - I have got an appointment to see them on Wednesday and thought that may be my lifesaver - I guess the way its going at the moment, you have to check the sites every day - I am getting more and more confused by the moment....