What to do? Unnecessary Panic?

chloecc

Hi there, I bought my flat as a FTB in jan 07, the 2 yr fixed rate through halfix is up jan 09. I don't have a clue what i will need to do prior to this date. The broker i used originally was useless and didn't tell me what fees were applicable to anything and didn't warn of the HLC and has now been struck off, i don't think due to my case either as i never did complain about it.

What is my first port of call, do i find a broker or get my flat re-valued first? I am on a very good rate of 4.29% at the moment and am aware i wont get near this but i don't have a clue of the process of re-mortgaging at all and its rather scary!! I am not looking at selling the property yet as i'm quite happy with it (apart from the neighbours) but am looking to go travelling in a few years time where i think i would most probably rent it out if that was an option nearer the time.

Any advice gratefully received. I know it's a long way off, but the current climate is making me panic a little, even though i probably shouldn't be worrying for a few months yet?

_Andy_

I would suggest you start looking in late Oct, possibly early November. The key to what you're eligible for is your LTV (loan-to-value), i.e. how much you owe on the property in relation to its value. The lower the LTV% the better deal you can get.
How much do you owe currently and how much (realistically) do you think the property could sell for?

chloecc

The flat was bought for £117,995 on a 97% LTV, it needed quite a bit of work doing to it, which is now done, new kitchen etc, so it has been modernised. I think by judging from local papers and websites with similar properties as its only a one bed it would be no more than £125,000 if marketed now? I think when i got my last statement through in January this yr i'd paid off something like £2k the total

_Andy_

So with a bit of luck I'd guess a surveyor would say £120k for mortgage purposes, so you might be able to scrape a 95% LTV mortgage through another lender. You might find your best bet is to stay with Halifax, you'll be able to find out what deals they can give you a bit nearer the time.

chloecc

Will they deal with me directly if i went through a broker previously though? also, should i contact them nearer the time to see what their offers are as oposed to any contact they may make with me? (sorry thickie alert!)

_Andy_

Yep you can go directly to them - I forget with Halifax whether it's 2 or 3 months in advance you can look.
They have the deals available on their website

http://www.halifax.co.uk/mortgages/newdeal.asp

Clive_Woody

I would suggest speaking with an IFA (Independent Financial Advisor). They can found lurking in most estate agents offices. They will be able to advise on current deals, different sorts of mortgages (fixed, tracker, offset, etc...), best rates, set up fees and basically advise on what deal would be open to you and would suit your earnings, repayment requirements.

I have personally never used a broker and the IFA I use is paid commision from the lender so I pay him nothing and he finds me the best deal and completes all the paperwork and chases up the lender if they are moving too slowly. We have used the same guy for years now and because he keeps our details on file when it's time to remortgage it take a shorter time to update him and then leave him to it.

I am not sure what benefits a broker offers over an IFA (no doubt somebody on here will be able to advise), but my impression was they are best suited for those who would find it difficult under normal circumstances to get a mortgage.

As others have said allow around 2 months to re-mortgage, i.e. start looking approximately two months before your current deal expires. Make sure you tell your IFA when your deal expires (they should ask this anyway) as you don't want to be hit with early repayment penalties.

Bit of advice - whenever you get sent mortgage information from IFA or new lender read it all, don't assume anything, make sure you understand all charges and the terms and conditions. it's very easy to trust what you have been told, but so many people take a very casual approach to mortgages despite them being probably the biggest investment you will ever make.

If you want to tell us where you live (just the town/city) there may well be somebody on here who could arrange to meet you and discuss your needs.



DISCLAIMER: I am not an IFA - so anything I say may or may not be accurate and it would be best to speak to somebody who knows more about this in case I am making a complete fool of myself here

chloecc

Thanks but it was an estate agents IFA i did use - broker schmoker, sorry my knowledge is limited - hahah thought they were the same thing!

thanks for all yoru help i will no doubt come back to the board approaching the wintery months and ask some more qu's !! :money:

Clive_Woody

chloecc wrote: »

Thanks but it was an estate agents IFA i did use - broker schmoker, sorry my knowledge is limited - hahah thought they were the same thing!

thanks for all yoru help i will no doubt come back to the board approaching the wintery months and ask some more qu's !! :money:

One thing to check is that the IFA is independent and compares all deals out there and if he is not tied in to particular banks/building societies.

It's also worth speaking with two different ones and see if they both come up with the same deals, this might take a bit more time but is worth doing until you find somebody you trust.