Secured loan and mortgage renewal

Tiddler_2

The Halifax will offer you a new mortgage deal, provided you are not in arrears with them, so that would save the hassle of moving your mortgage, getting deeds of postponement (for which you would have to pay a fee for) and paying any mortgage exit fees. It would also mean you wouldn't have any problems with any valuations - as the Halifax already have the mortgage.

The "value" of the property quoted by the Halifax of £88k is probably an indexed valuation that they use, which is based on the original valuation they will have done when you took out the mortgage with them and updated in accordance with the Halifax's monthly House Price Index. It is not really very accurate, so I wouldn't worry about the figure too much.

It might be worth speaking to a broker though as if you were to pay off the picture loan and consolidate it into the mortgage, it may well save you a little bit of money - and if he doesn't feel that it will he can always deal with the transfer to a new deal with the Halifax, as he will get paid a commission for that by the Halifax anyway.

headoutthesand

Tiddler wrote: »

The Halifax will offer you a new mortgage deal, provided you are not in arrears with them, so that would save the hassle of moving your mortgage, getting deeds of postponement (for which you would have to pay a fee for) and paying any mortgage exit fees. It would also mean you wouldn't have any problems with any valuations - as the Halifax already have the mortgage.

The "value" of the property quoted by the Halifax of £88k is probably an indexed valuation that they use, which is based on the original valuation they will have done when you took out the mortgage with them and updated in accordance with the Halifax's monthly House Price Index. It is not really very accurate, so I wouldn't worry about the figure too much.

It might be worth speaking to a broker though as if you were to pay off the picture loan and consolidate it into the mortgage, it may well save you a little bit of money - and if he doesn't feel that it will he can always deal with the transfer to a new deal with the Halifax, as he will get paid a commission for that by the Halifax anyway.

Thank you Tiddler - I didn't even take all that into consideration. I've been putting away towards the postponement fee which is roughly £200 - £250.

I think for the situation that we are in at the moment I would rather stay with the Halifax but when I called them yesterday I was told that they couldn't give us a quote till mid May which isn't leaving me a lot of time if the rate is rubbish.

The rate on the loan is something like 10%. They have however been lowering the rate the last few months.

Although we have a lot of personal debt, we have never ever defaulted on any of the very important stuff like mortgages,loans, utilities, council tax etc. I've only had the odd late payment of bills etc but not for at least a year. Infact checking my credit file and most of the bad debt should be coming off in Novembern this year.

Thank you everyone for your advice on this. I am totally clueless when it comes to mortgages....other than my sister being stupid for paying £156,000 for a house which only surveyed at £137,000......

Thats the touble in Scotland. Houses are on the market for OFFERS OVER and you should expect to pay 10% - 15% above the asking price. It was on the news today though saying that although house prices in England and Wales have fallen, Scotland is still rising