NR customer needs remortgage advice

vlabla

Hi,

I am on the NR 2yr fixed (which lasts 21 months :rolleyes:), 4,79%. The deal expires on 01/09. Mortgage is for £222,000.00 and it is 82-3% of the value of the house. It might be even beter or worse equity then 82% but it depends on the valuation, of course.
Joint income is 58500. No credit history problems.

I have few questions:
1) When I should start looking for the new deal? I think 3 months is usual but situation is not usual. And I am worried that prices will go down and I will be above 90 or even 100% equity in a few months. Are there decent deals which can be made now for 01/09?

2) If I can make deal now what would you recommend as a best deal. I feel like I would go for 3-5 yr fix this time as no plans to move. Even HSBC Rate matcher seems interesting although they quote 2500 arr fee on 2yr fix for my case. Not sure whether our income would be acceptable for them.

3) Is it common that arrangment fees can be included in the mortagage or you have to pay them upfront?

Thanks in advance!

Gloster_Advise

Hi vlabla,

Do you want to stay with The Rock!!?

as i have just mentioned on another thread, time span to start looking an applying varies dependant on your attitude to how things may pan out in the next 4-6 weeks.

Call HSBC as you will take a hit on your mortgage rate if you want down the conventional route. Income is under 4x so theoretically this should be OK but don't take my word on it.

Arrangement fees can be added on top of what you borrowed.

Regards
Si

payless

comments on HSBC ratematcher

The Rate Matcher offer is available to new customers who have come to the end of a fixed rate mortgage after 1 January 2008 or are due to do so by 31 August 2008

( someone recently mentioned paying £6K penalty to NR as repaid a day early!)

In current circumstances a fee of just over 1% is not bad if getting 4.79% rate !


NOTE - Clients tell me HSBC are asking for fee upfront ( although able to increase mtg debt if need to re-instate your cashflow)

vlabla

Hi,
Thanks for your prompt reply!

No, I don't want to stay with NR but also do not want to start my new deal before 02/09 becuase I would pay hefty fee to NR.

My view is that rates in the next 4-6 weeks may go up as well as down but not significantly. My view is also that prices may go down as well as crash and I can lose my house. So I don't want to play games over predicting rates but want to secure a deal while I can. Please let me know if you think I am too frightened/cautious.

Can you expalin this to me: "Call HSBC as you will take a hit on your mortgage rate if you want down the conventional route."

minimike2

Isnt the rate matcher a max 80% LTV?

vlabla

I think rate matcher is now 90% but I am not eligable at the moment because my deal expires on 01/09.
Any other ideas for deals that could be fixed now for September?

Gloster_Advise

Certainly vlabla,

Some, not all 80%+ LTV mortgage rate would be higher than what you could be offered from HSBC on their rate-matcher. this is what I meant by if you didn't look at HSBC your monthly payment would be higher with , say C&G, than HSBC.

cc payless, that is very interesting about not being able to add the fee above. Is this set in stone as far as your aware or is this a=on a case to case basis.

Regards
Si

payless

Its from feedback from the ( too many) clients I have passed over to them

on website An up-front booking fee of between £599-£4999 will apply

Gloster_Advise

I know what you mean!!!

vlabla

I don't understand the difference between 'including fees in mortgage' and 'increasing mgt debt' Isn't it the same thing?
Also would like if someone can answer my question: Any other ideas for deals that could be fixed now for September?

Gloster_Advise

vlabla,

with HSBC and their rate matcher, if your arrangement fee is £3500 you have to pay this either by debit/credit card etc once the mortgage has been agreed. If you can offord this then bingo do it and apply.

There are bags of products avaiable for securing before September. You still make me think you are undecided by your reply which is why I am not pointing any lenders at you at the moment.