Remortgage Guide Discussion

newbee_2 · 20 March 2005 at 11:14PM

I am getting married in November of this year and the funding for this is to come from the remortgage of our property. However we need the funds prior to Oct 2005 and still have redemption penalties on our existing mortgage until May 2006.
We have been advised not to take a secured loan as the interest is added to the balance immediately and therefore should we leave the mortgage to May 2006 to then remortgage to pay off this loan all of the interest would be due - I am worried however that this advice has been given by Financial Advisors desperate for their fee from a lender due to a remortgage.
Our cirrent rate is 7.4% and we have been offered a remortgage with a different company of 7.2% approx our redemption penalties would be around £3500. And we're in the unfortunate situation of having a less than brilliant credit score.

Please help - any advice would be great x

bobobrussel · 21 March 2005 at 12:06AM

Did I read the last message right? You want to remortgage your property to pay for your wedding! I'd pot off\the wedding until May 2006, then transfer to someone like EGG. We recently did that and saved a fortune compared to our previous lender. Rhen if you really need to have the grand wedding and homeymoon, borrow the money at the lowest rate possible, maybe even a credit card balance transfer at 0%

How much is it costing? We chose to go to Gretna Green and get married over the Anvil, in the traditional romantic way. Drove there, got married, went to local hotel for lunch then drove home and announced it to all the relatives. Total cost £400. Surprisingly, very romantic, very memorable and something I'll treasure for a long time. Best of all, no pressure from relatives about what to wear, style of wedding, venue, cars, honeymoon, etc. I definetly would recommend it.

bridiej · 21 March 2005 at 9:31AM

I personally think you'd be crazy to remortgage to finance a wedding, you'll end up paying for it for the rest of the mortgage term and the interest will really mount up.

Can you get married on a tighter budget? We had our big day and spent £1500 which included everything, even my dress!

There are some discussions on this in the Family section.

I agree with the previous comment, couldnt you take out a small loan and then transfer it to Egg or another 0% balance transfer card?

Money_Cub · 24 February 2006 at 2:15PM

Requested and received my copy within two days, thanks Marty.

:j

pingu · 24 February 2006 at 7:16PM

hi

is this the new guide?

because i have one from few months back!

AircraftHandler · 18 July 2006 at 2:23PM

Hi there. Me & my Fiancee have a joint mortgage with Northern Rock. We took a Mortgage for £99500 over 35 years at an apr of 6.19% we also borrowed £20500 on top of that to pay off existing debts & make plans on the house we have bought. Our monthly direct debit is £700. We have been living at the house for over a year & we have been looking to move mortgages to someone else but we have a redemption fee of £3000 so we are still in two minds. I have signed up to receive the guide to re-mortgaging to read what that has to say. Our combined income is £36000 pa & im in the Armed Forces so im garunteed a wage for the rest of my career but my Fiancee has just started her job so is that a problem? Our credit score is average also as we were not down on the electoral role but all that has been taken care of & it has been updated on my credit file.

I'm just after some info on what is available to us?

Please ask any questions & i will answer them

Your help is greatly appreciated.

Ty&Ally

Ian_W · 18 July 2006 at 9:29PM

Hi AircraftHandler,
You'd have been better posting this as a new thread - this one's really to comment on the guide rather than answer specific remortgage questions I would have thought.

The only reasons to remortgage when you've got £3k in penalties is to save money overall or, as a last resort - if you can't afford them - reduce your monthly payments by getting a lower interest rate.

You need to say whether the £20500 is part of the mortgage and at the same interest rate or one of these so called 125% mortgages which actually involves part of it being an unsecured loan.

If it is then part of the mortgage then there isn't much scope for saving by paying penalties. £120K at 5% = £6000pa interest, at 6.19% = £7428, so given the fact you'll probably end up paying £600 or more in fees a market leading just under 5% 2 yr deal is going to end up more expensive and 3/5 yr deals [fixed at least] now mainly seem to be over 5% so again the savings are pretty finely balanced.

If it is one of these above 100% deals your house would need to have gained significant value in the last 12 months to make it even possible, ie it would need to be valued at £126K+ to get a 95% remortgage that covers all you owe NR.

HTH - if you can clarify and post on a new thread I'm sure one of the helpful mortgage brokers who post on here will answer.

tony3 · 1 August 2006 at 11:59AM

Hi, Is there anyone who could give me some advice? I've just inherited half a house and want to raise money to buy the other half. Real novice, don't know where to start, be grateful for any suggestions?
Tony3

dian477 · 25 October 2006 at 12:16PM

l have an issue with abbey....l have been unable for some years to find out state of play with my morgage or morgage payments...they ceased some years ago to notify me of interest changes and how they affected any monthly payments l was paying...and no l don't pay by standing order..l travel 30 mile round trip to pay them personally...and the girls in their branch have been unable to help..save give me phone numbers that no-one replies on, my year end statements do nothing to clarify things...save to let me know theres no short fall...but thats all down to me frantically overpaying to stop that happening...l'm disabled and on benefits...it all makes for sleepness nights...l'm persuing their complaints procedure at moment to try and get compensation for how they have treated me...as in my situation even £5 saved a month makes a big difference..its early days yet...as they have only offered £100...which l deem an insult given the extreme hardship they have caused me...interestingly l was given recently a number to ring to find final figure on your morgage should you wish to pay it off...now they answered on that number!!!!

if anyone else has had simialr issues l would be grateful for some advice ...as l suspect many people on benefits and not well off might be getting the same treatment...and its needs to stop

GPO888 · 4 February 2007 at 3:27PM

bobobrussel wrote:

I agree with knight-on-the-town. Lets save it a a PDF and then even more people can download and view it. I know that could put strain on the new servers, BUT, a mortgage is probably the biggest debt anyone will have during their lifetime and if you can save money, lots of money, then surely its got to be worth it.

I for one would like 800 copies so I can distribute them to my local community through our community regeneration newsletter. If you're listening London & Country, PM me and we'll discuss it more.

INSTEAD OF PDF FORMAT COULD THIS BE SENT IN A NORMAL EMAIL GPO888

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