What Mortgage?

Norbert666

Norbert666

Norbert666

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Joined
22 Oct 2002
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Essex, innit?
My current mortgage ends in June. It's currenty on 2.9% interest only.

Obviously I don't want to pay base rate at 6% or whatever it is.

Anyone know any good deals or links to info about good deals?

ta

James
 
Think very carefully, due to mortgages using the standard "loaded up front with interest" method of calculation it can be very costly moving your mortgage or re-mortgaging too frequently.

I'd certainly consider sticking to base rate for a while if I were you, front loading of interest is what makes it beneficial to the banks to keep allowing you to change, remember, they wouldn't offer re-mortgaging if it didn't net them cash.

EDIT:

Here's a calculator to demonstrate Calculator

It won't always have a big impact but can do, certainly will for me unless I'm doing my calcs wrong.
 
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As I say to everyone who asks me for mortgage advice go and see an independant finiancial advisor (or two) it won't cost you a bean and could save you a lot of cash and even more trecking about.
 
a1ex2001 said:
As I say to everyone who asks me for mortgage advice go and see an independant finiancial advisor (or two) it won't cost you a bean and could save you a lot of cash and even more trecking about.
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I'd certainly advise going to at least 2 IFAs. Remember that they are paid commssion by the lenders and some will even want a payment from you.

I've just had my mortgage agreed today and it's amazing the differences in the information you'll get from people. In the last six months I've spoken to six IFAs and every single one has given me different advice, including two who told me I would need either 20% or 15% deposit before it was worth applying (because I'm a contractor).
 
[DOD]Asprilla said:
I'd certainly advise going to at least 2 IFAs. Remember that they are paid commssion by the lenders and some will even want a payment from you.

I've just had my mortgage agreed today and it's amazing the differences in the information you'll get from people. In the last six months I've spoken to six IFAs and every single one has given me different advice, including two who told me I would need either 20% or 15% deposit before it was worth applying (because I'm a contractor).
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Doesn't that suggest they're all idiots and you might as well do it yourself if you're even remotely competent with maths?
 
Murf said:
Doesn't that suggest they're all idiots and you might as well do it yourself if you're even remotely competent with maths?
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Depends upon your situation.

I'm a contractor and my income isn't always the most visable thing. I needed advice about which lenders would be the best ones to approach as well as which would have the best rates.

Also, the published rates are headline rates and are not necessarily the ones you'll be offered. You won't know what you'll be offered until you apply so you might also need an IFA to take your details to all the leaners to find out what rate you'll actually be offered.
 
Kronologic said:
Are you putting money aside in savings as well or are you only making the intrest repayments? Out of curiosity
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Have my fingers in a few pies ;)

Also the current mortgage is only 50% (will be even less when I remortgage as I have more I can put towards it), so interest only is deffo the way forward :)
 
Murf said:
Doesn't that suggest they're all idiots and you might as well do it yourself if you're even remotely competent with maths?
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Depends on the mortgage companies they deal with. Even IFAs don't deal with every mortgage lender, and different lenders have different t&c's, which will lead to different advice.

One good thing about going through an IFA or intermediary is that every mortgage lenders have mortgages which are ONLY available through them. Every lender has three categories of mortgage - direct (can only be bought directly from the mortgage lender), mixed channel (can be bought direct or through an IFA/internediary/broker) or single channel (IFA etc only - can NOT be bought directly.)

Also remember to factor in any redemption charges/penalties, as that can make a big difference to what new mortgage to move to, both in terms of whether the new mortgage is a good one further down the line when it's fixed term expires, and what it costs to get out of the old one now. If you have to pay steep fees to move, you need a really cheap new mortgage to make it worthwhile financially.
(Redemption fees are on the up though, as all mortgage lenders want to discourage people from following the lowest rates every two or three years - what the industry calls "rate tarts.")
In addition, the fees for taking out a mortgage are on the up too - it all eats into the savings you make when moving away from one lender to another, another anti-rate-tart tactic.

For example, one major lender has a really low rate of 1.75% fixed for two years before going back onto SVR (Standard Variable Rate - what was referred to earlier as base rate, but there are very hefty penalties (starting at 7%) if the mortgage is moved away at any time in the first 6 years.

BTW, I work in the Treasury of one of the largest mortgage lenders!

Please be aware that giving financial advice without being qualified to do so is a criminal offence - so people please take care with what is said in this thread
 
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