Re-mortgaging, can this happen?
Discussion
Hi all, I have, to me, a not so simple mortgage to ask, it’s really confused me. Also I don’t want to put to much info on this forum but I hope this is enough.
Basically we brought our house for £250,000 in February 2009. Other houses on our road in similar condition are selling for around the £300K mark which means our house might have gone up in value. I read in the paper yesterday that mortgage company’s are reducing there rates and as we are paying 5.85% (10% deposit) I feel that if we can re-mortgage it might save us some money.
Our exit fee is 5% of the remaining balance so around £11,000, do other mortgage companies ever help to pay for this in order to get your business?
Now I get a little lost… If for example our house is now worth around 300,000 we could possible have a 25% deposit (excluding all possible fees and our exit fee mention above).
Do people often re-mortgage before there current deal is finished? I don't want to have any cash in my pocket for doing this, I would just like to lower the payments and ensure that in 4 years time we have paid more of the mortgage of than if we stuck with our current deal.
Does this make sense to anyone?
Basically we brought our house for £250,000 in February 2009. Other houses on our road in similar condition are selling for around the £300K mark which means our house might have gone up in value. I read in the paper yesterday that mortgage company’s are reducing there rates and as we are paying 5.85% (10% deposit) I feel that if we can re-mortgage it might save us some money.
Our exit fee is 5% of the remaining balance so around £11,000, do other mortgage companies ever help to pay for this in order to get your business?
Now I get a little lost… If for example our house is now worth around 300,000 we could possible have a 25% deposit (excluding all possible fees and our exit fee mention above).
Do people often re-mortgage before there current deal is finished? I don't want to have any cash in my pocket for doing this, I would just like to lower the payments and ensure that in 4 years time we have paid more of the mortgage of than if we stuck with our current deal.
Does this make sense to anyone?
How long have you got on the current deal ?
I am currently on a higher fixed rate, with a 3% exit fee. 10% deposit, but value of house may have gone down, stayed the same or gone up.
But it runs out in a few months and for me it is not worth paying the exit fee for so short a period - I would rather wait and take a deal available then.
If you think this deal or similar will not be available when your current fix finishes, then of course, you do have to calculate the benefits of moving to the new deal.
If your house has gone up in value, then when you get the new mortgage, your loan to value ratio would be better.
I am currently on a higher fixed rate, with a 3% exit fee. 10% deposit, but value of house may have gone down, stayed the same or gone up.
But it runs out in a few months and for me it is not worth paying the exit fee for so short a period - I would rather wait and take a deal available then.
If you think this deal or similar will not be available when your current fix finishes, then of course, you do have to calculate the benefits of moving to the new deal.
If your house has gone up in value, then when you get the new mortgage, your loan to value ratio would be better.
Soovy said:
bracken78 said:
....do other mortgage companies ever help to pay for this in order to get your business........?
You do KNOW there is a credit crunch, right?
bracken78 said:
Soovy said:
bracken78 said:
....do other mortgage companies ever help to pay for this in order to get your business........?
You do KNOW there is a credit crunch, right?
Seriously, these t
ts would cut their nose off to spite their face, the thought that any lender would pay your early repayment charge to get the business is rediculous, credit cruch or not!Noone is going to pay you to remortgage, sorry. However there are 2 lenders who will allow you to remortgage and not pay the fee. Subject to t&c's of course.
If you have to pay the ERC's then Whether you cansave the money over time would depend on how long your tie-ins last.
If you want to talk to me about it, drop me a pm and I'll run through your details.
If you have to pay the ERC's then Whether you cansave the money over time would depend on how long your tie-ins last.
If you want to talk to me about it, drop me a pm and I'll run through your details.
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