Remortgage Advice Needed

Mum_of_many_4

We bought our house in 2006 and our tie in period ends july 2008. Yesterday we had a call from the broker who got us a deal in 2006 to say he needed to meet with us to try and arrange a remortgage, he wanted to visit us today at 5pm which wasnt possible so we agreed that he could have a look around and see what he came up with. He called back today and said he had found a deal with Abbey of either 6.03 % fixed for 3 years or 6.3 % discounted for 3 years, he didnt state fees although I am sure there will be some.He wanted an answer by the end of today to which we said NO !! as I feel we are being pushed into it and wanted more time to check things out.
Mortgage would be for the following

Approx house value £185,000 (most houses are up at £10,000 more but I am trying to be realistic)
Mortgage required £140,600
Term 23 years

In the past we have had defaults but a recent look at the credit files shows that they are now gone and credit file is clear. We have no debts apart from our mortgage.

Can anyone tell me what they think of this deal? I feel reluctant to agree as the broker called us and seemed to be really pushing us to go for this even though we have another 3 months at least before we can change lenders.

payless

which lender are you currently with- have you contacted them to see what they might offer

Mum_of_many_4

we are currently with a company called "wave lending" formally known as "freedom lending" due to our credit file not being clear at the time of application. My next task will be to call them and see what they can offer.

payless

Doubt Wave will offer much other than the contracual follow on rate . They might have a preferred broker who they will suggest you use ( watch for fees)

If you case is below 75% ( needs worth £188K if can't reduce debt ) it will help secure new lending at better rates

Obviously no one here can say if the deal suggested is suitable or the best for you... it does seem you might need help of broker to avoid approaching too many lenders - but perhaps also worth asking own bank to see what they have to offer

I do wonder if we might see mainstream lenders being put off business that is remortgaging from non-standard siurces

Mum_of_many_4

We did try the speaking with the Halifax yesterday as we have banked with them for a long time and had a mortgge with them before. They were happy to give us a mortgage promise for the required amount, this is what they offered.
Tracker 6.59 %- £499 fee
Tracker 6.49 % - £999 fee
Fixed 6.49 % - £499 fee
Fixed 6.39 %- £999 fee
Flexible 6.30 % - £999 fee

All were 3 year deals

herbiesjp

As payless rightly says, at 75% borrowing you open up a lot more doors in terms of rates available

You should also find free legal fees and free valuations thrown in - there were deals cheaper than the ones you have quoted from both Abbey or Halifax, but I haven't updated my sourcing system as yet to check if they are still around.

Mum_of_many_4

Sorry I am really rubbish at working out LTV, if I could get down the amount we wanted to borrow how much would I have to bring the amount down to in order to be at 75 % ?

herbiesjp

If your property is worth £185k - then 75% mortgage would be £138,750

If you cannot reduce your mortgage amount to that level, the you would need your property to be worth £188k to allow you to re-mortgage at 75%

Mum_of_many_4

Ok , would you possibly be able to tell me the amount if the house was only worth £180,000 ? Sorry for all the questions.

herbiesjp

If the house was worth £180k then the mortgage amount of £140,600 would be 78.11% LTV

Mum_of_many_4

Thank you. I will try my best to get the mortgage amount down although it may take me a couple of months to achieve it. We are tied in with our current lender until 30 th July anyway.