When to Re-mortgage?

blundaruss

blundaruss

blundaruss

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Any mortgage brokers out there??

I’m looking for a little advise, or at least pointed in the right direction.

I am in a situation where I have to re-mortgage. I have spoken to a few mortgage brokers and it seems the general consensus is that I need to get rid of my debts before any mortgage company would be willing to lend me enough.

My debt consists of a large sum on a 0% credit card. I have been chipping away at it slowly and the main thing is the debt isn’t increasing, however if I want to re-mortgage I will need to pay it all off.

I have been looking into mortgage interest rates and seem to just be going round in circles, some people say the rate will remain as it is until next year, others have even said it will go down more recently. So my question is (ignoring my debt, which I may or may not be able to pay off soon) would I benefit more if I re-mortgaged now? or would it make little difference if I re-mortgaged at the end of the year?

Any guidance would be much appreciated!
 
I'm about to remortgage next month.

I could wait until the end of the year, but even with the big bonus I get then, it doesn't help me jump LTV bands (will still be at only 85%, but only just). In the meantime though, if I wait, I get a 1% jump in APR (to 4.99%), so that's an extra £200 or so every month. Whereas if I remortgage next month, I can fix it at 3.44% so around £100 less every month, although I'll probably keep the payments the same and take 3 years off the mortgage.

This is all on an offset mortgage.
 
Im on the nationwaide standard base rate of 2.5% which stays that percentage above the BOE interest rtate. I thiink nationwaide are offering a 10y fixed of 2.89% which im not sure whether to go for
 
My current mortgage is awful! We got it in the height of the market in 2007. We got the Northan rock 100% interest only mortgage with a loan on top! This was intended as a short term mortgage to get onto the property ladder! Unfortunately me and the wife have been seperated for some time now which is the reason behind remortgaging. If I was to just remove her from the mortgage I would have to go onto northan rocks repayment mortgage which I wouldnt be able to afford. Moving is out of the question so re-mortgaging is the only option. My current ltv will be 82% but thats going by an estate agents valuation so depends what the mortgage company value my place at.
 
blundaruss said:
So my question is (ignoring my debt, which I may or may not be able to pay off soon) would I benefit more if I re-mortgaged now? or would it make little difference if I re-mortgaged at the end of the year?

Any guidance would be much appreciated!
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well if you're paying a higher interest rate at the mo and there are lower rate deals around then you can benefit by remortgaging sooner

however if you're asking about whether people think rates are going up or not by the end of the year, no one knows for sure.... get the crystal ball out
 
sprite1275 said:
Im on the nationwaide standard base rate of 2.5% which stays that percentage above the BOE interest rtate. I thiink nationwaide are offering a 10y fixed of 2.89% which im not sure whether to go for
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2.5% above base rate is a bit poor unless you've got a high % LTV

first direct offer a lifetime tracker 1.29% above base rate for 65% LTV, or 1.49% above base rate for 75% LTV

as for whether to take a 10 year fix, perhaps best to speak to an advisor... what are the penalties if your circumstances change, can you transfer it to a new property, are you very likely to stay in your current property for the foreseeable future if not etc..
 
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dowie said:
2.5% above base rate is a bit poor unless you've got a high % LTV

first direct offer a lifetime tracker 1.29% above base rate for 65% LTV, or 1.49% above base rate for 75% LTV

as for whether to take a 10 year fix, perhaps best to speak to an advisor... what are the penalties if your circumstances change, can you transfer it to a new property, are you very likely to stay in your current property for the foreseeable future if not etc..
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might have to look into that then. I know with NW you can make overpayments whenever you want. Not that i do although i should.
 
Best way is to find suitable products using a comparison site or what not, then use affordability calculators on lenders respective intermediary sites for the products that you prefer. This will give you a good idea if your level of debt will be a problem.

Also see what your current lender will do. If you have a good track record with them (no missed payments etc) will be easier and also you will not likely need to pay setup fees etc if you went to another provider.
 
blundaruss said:
My current mortgage is awful! We got it in the height of the market in 2007. We got the Northan rock 100% interest only mortgage with a loan on top! This was intended as a short term mortgage to get onto the property ladder! Unfortunately me and the wife have been seperated for some time now which is the reason behind remortgaging. If I was to just remove her from the mortgage I would have to go onto northan rocks repayment mortgage which I wouldnt be able to afford. Moving is out of the question so re-mortgaging is the only option. My current ltv will be 82% but thats going by an estate agents valuation so depends what the mortgage company value my place at.
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Time to sell up and walk away why do you want to be saddled with a debt your are clearly struggling to service on the back of a broken relationship?
 
Firstly, The equity in the property would not be enough for a deposit on a new place and cover all legal and moving fees etc, and due to the fact I am in debt im not in a possision at the moment to save up for it.

I wouldnt exactly say I was struggling either. I have till the end of the year to pay off the card as that is when the interest free period is up, I can easily pay it off by then. Just trying to determin if it would be benificial to me to get it payed off before then in regards to mortgage prices.
 
If you're on a interest only mortgage how do you intend to pay off any of the houses actual cost?
 
@Spook187 - ignore areksnumbr1sxylady, I don’t think they ever have anything constructive to say.

@Gribs - that’s what I thought he meant, but if I’m looking to re-mortgage to a repayment what does it matter? or am I missing something? When we got the mortgage in 2007 we weren’t required to provide a plan of paying it off, and I still don’t have one. Which is why I am looking at re-mortgaging.
 
Legally what situation are you in, are both names currently on the mortgage and is that likely to continue?
Are you both still making contributions to the mortgage?
Are you planning to buy her out at some point, or not until much later along?
How amicable is the provision of funds from her?
 
blundaruss said:
@Spook187 - ignore areksnumbr1sxylady, I don’t think they ever have anything constructive to say.

@Gribs - that’s what I thought he meant, but if I’m looking to re-mortgage to a repayment what does it matter? or am I missing something? When we got the mortgage in 2007 we weren’t required to provide a plan of paying it off, and I still don’t have one. Which is why I am looking at re-mortgaging.
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I know, just gets my back up when the snotty comments come out on this forum.

Have you tried a local building society, i got a better deal this way than using the big banks:)
 
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