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Mortgages (Read 43355 times)

T_B

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#25 Re: Mortgages
July 30, 2012, 03:14:58 pm
I'm in the process of applying for a mortgage for purchasing a new house. My FA reckons 5 year fixed are good value at the moment when you consider a) they're only .5% above the Trackers and b) if you look at the long term cost of lending.

We are also in the position where we want to know where we are at as my other half will be stopping working next yr for a few years.

Likely we'll apply for a Woolwich mortgage. Also in the interesting position whereby we're buying a house that needs major work (seemed to make sense, what with our second child due in January  ;)) so expect to run into difficulties with lender valuations/whether they'll even lend at all... as the roof is f*ct etc etc

richieb

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#26 Re: Mortgages
July 30, 2012, 06:19:33 pm
Quote
Its tricky to compare deals if you are at or near a LTV threshold

Quote
Interesting, any idea where the thresholds sit? We'd be looking for 60-65%, assuming the most recent valuation holds...

No idea to be honest. I dont know if there is any consistency across lenders on this but I would have thought you can access most of the best deals with 60-65%.
I found there was either a slightly higher rate or higher fee between say 70 and 75% LTV and if you are just guessing on the value of your house its hard to compare deals.

namnok

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#27 Re: Mortgages
July 31, 2012, 08:05:37 pm
Just been told by the wife that the boe base rate may Be cut to 0.25% next month.

shark

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#28 Re: Mortgages
July 31, 2012, 09:26:46 pm
Just been told by the wife that the boe base rate may Be cut to 0.25% next month.

Is she Christine Lagarde ?  :wub:

Johnny Brown

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#29 Re: Mortgages
January 31, 2013, 06:14:24 pm
Just to revisit this, finally getting round to it...

Anyone know any good deals? Looking at 65% LTV over 25 years.

Or care to speculate on what the base rate is likely to do in the next year or two?

shark

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#30 Re: Mortgages
January 31, 2013, 07:40:56 pm
I hedged my bets and fixed at 3.39% for five years with Nationwide.

Currently Nationwide and HSBC are offering 4 and 5 year fixes at 2.69% and 2.89% respectively but 60% LTV which sounds exceptionally good but obv. look into their fee and other setup costs.
« Last Edit: January 31, 2013, 07:49:26 pm by shark »

Johnny Brown

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#31 Re: Mortgages
January 31, 2013, 07:50:10 pm
Ta. Spotted that First Direct are offering 2.14% above base for term, which looks impressive, but then I'm not overly familiar with what the best tracker rates are...

Johnny Brown

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#32 Re: Mortgages
February 08, 2013, 06:32:01 pm
Any advance on 1.88% above base for term?

Will Hunt

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#33 Re: Mortgages
February 28, 2015, 07:54:52 pm
Our current 2 year fixed rate will come to an end in April so need to choose another product or face the unappetising 3.94% SVR.

The bank reckons our house price has increased by £10k since we bought it 2 years ago (YYFY) so we now fit into the next LTV bracket down (OK, I'm boasting now  :dance1:)

The tracker rates on offer are lifetime rates (24 years left on the mortgage), so we're thinking to steer well clear of them.

The choice is really between a 5 year fixed rate of 2.89% or a 2 year fixed rate of 1.89%.

Do we hedge the bets and take the 5 year product or gamble and go with the 2 year? Either way this will be a £50 or £100 a month saving to the household so significantly good news  :beer2:

rodma

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#34 Re: Mortgages
February 28, 2015, 07:57:14 pm
Depends on the setup fee and how that factors in.

Will Hunt

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#35 Re: Mortgages
February 28, 2015, 08:14:08 pm
Each of those involves a £300 fee (though I don't know whether that is payable as a lump sum or whether it is added to the debt - in which case it would probably be shit). I've done the sums (or rather, Martin Lewis has: http://www.moneysavingexpert.com/mortgages/compare-mortgage-rates ) and the products with fees always work out better than their free equivalents, as you'd hope!

The more expensive rates (£999) don't appear to be very effective over the life of the product.

The question is really whether we should fix for 2 or 5 years.

Jaspersharpe

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#36 Re: Mortgages
March 01, 2015, 12:28:16 am
Whichever deal you take continue to pay the same amount you are paying now.

Fuck the extra £50 a month, you can already afford the mortgage you're paying so pay the same as 24 years will become a lot less.

shark

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#37 Re: Mortgages
March 01, 2015, 09:27:44 am
How about 10 years at 2.94% ?

I tried to persuade Nationwide to move us to this before our 5 year deal was up but they refused to waive the skyhigh early repayment charges.

http://www.nationwide.co.uk/about/media-centre-and-specialist-areas/media-centre/press-releases/archive/2015/1/20-jan-lowest-10-year-fixed-rate-mortage

I also differ to Jasper with regard to repayment amounts - I would have everything on interest only if I could


Jaspersharpe

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#38 Re: Mortgages
March 01, 2015, 04:18:35 pm
How come shark?

Will Hunt

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#39 Re: Mortgages
March 01, 2015, 07:51:28 pm
Just to confirm, Habrich. Do you mean to say that the most sensible option is to take a low rate and put the excess money into some financial product or other?

Without getting into more complicated products, cash ISAs are paying out between 1.5 and 2.5% at the moment, so with borrowing rates being consistently higher it makes more sense to me to put excess money into overpayments (with some still going to the cash ISA rainy day fund; haven't got round to a stocks and shares ISA yet) insofar as early repayment rules allow.

Stabbsy sent me a PM with some useful stuff to consider so need to scratch our heads a little more yet.

Jaspersharpe

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#40 Re: Mortgages
March 01, 2015, 08:44:12 pm
Ah right. I've no interest in buying a bigger house, just happy I'll have no mortgage relatively soon.

shark

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#41 Re: Mortgages
March 01, 2015, 10:14:24 pm
Just to confirm, Habrich. Do you mean to say that the most sensible option is to take a low rate and put the excess money into some financial product or other?

Without getting into more complicated products, cash ISAs are paying out between 1.5 and 2.5% at the moment, so with borrowing rates being consistently higher it makes more sense to me to put excess money into overpayments (with some still going to the cash ISA rainy day fund; haven't got round to a stocks and shares ISA yet) insofar as early repayment rules allow.

Stabbsy sent me a PM with some useful stuff to consider so need to scratch our heads a little more yet.

Yes - stocks over the longer term as habrich suggests is worth considering. One relatively straightforward and flexible approach would be to regularly pay into a shares ISA that can hold a low cost FTSE tracker fund that reinvests the dividends like this one.

« Last Edit: March 01, 2015, 10:20:20 pm by shark »

LB1782

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#42 Re: Mortgages
March 02, 2015, 06:38:19 am
Some good advice on here. Having been through this recently there are a few other things i would consider before overpaying (i am not an IFA):

1. Will be able to keep a contingency fund (something like 3-6 months take home) somewhere you can get it fast?

2. Check when your mortgage company calculates interest: if it is not daily, keep the cash somewhere earning a bit of interest (maybe one of the new-breed current accounts paying 4-5%) until just before mortgage the interest calc date.

3. Make sure you will not not be moved onto reduced normal payments or locked in to making payments at the higher rate every time.

shark

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#43 Re: Mortgages
March 02, 2015, 09:47:51 am
1. Will be able to keep a contingency fund (something like 3-6 months take home) somewhere you can get it fast?

The stocks ISA can be cashed in immediately if required in an emergency and I regarded it as the rainy day fund when I had one (before diverting it into property). If you've (over)paid that money instead to your mortgage lender it is out of reach.

As habrich implies a lot comes down to knowing yourself and your attitude and restraint (or otherwise) to finances. If the temptation of having a large instant access pot of money is too tempting when faced with a desirable non-emergency consumable purchase then its not the right choice. Similarly if the volatility of the value of that fund has you checking the FTSE everyday and sweating every night than it is also not for you.   

Jim

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#44 Re: Mortgages
March 02, 2015, 10:32:59 am
I think good advise for the normal punter (ie don't drive around in 5 series or have multiple properties etc...) on here would be to make over payments instead of banking it (interest on borrowing is always more than interest on saving accounts), gambling on the stock market is just that, gambling.
Interesting thoughts on a contingancy fund, definately worth considering but you'll still be loosing money on it.
We have an old woolwich mortage from long ago and we're paying something daft like 0.25% over base and its as flexable as you want it to be and we have a reserve account on it. Won't be changing it anytime soon

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#45 Re: Mortgages
March 02, 2015, 10:49:00 am
If you're looking to remortgage we''l do 'mates rates' for the conveyancing.

shark

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#46 Re: Mortgages
March 02, 2015, 10:51:51 am
We have an old woolwich mortage from long ago and we're paying something daft like 0.25% over base and its as flexable as you want it to be and we have a reserve account on it. Won't be changing it anytime soon


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#47 Re: Mortgages
March 02, 2015, 10:53:59 am
If you're looking to remortgage we''l do 'mates rates' for the conveyancing.

'cause my ignorance, but why do we need conveyancing for a remortgage? Get it when you are 'buying' the house from someone, but can't quite understand why I need solicitors for a remortgage?

LB1782

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#48 Re: Mortgages
March 02, 2015, 11:00:21 am
Whilst I agree broadly that
interest on borrowing is always more than interest on saving accounts
I'd say that these are abnormal times and this isn't necessarily true just now.

Will is talking about a
5 year fixed rate of 2.89% or a 2 year fixed rate of 1.89%.
But you can get 5% gross from a few thousand (or ~3% gross on more)
in a current account and up to 6% gross by
putting a bit away regular like (actual interest is likely to be lower than headline because of limit to amount paid in)


Sloper

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#49 Re: Mortgages
March 02, 2015, 12:01:39 pm
If you're looking to remortgage we''l do 'mates rates' for the conveyancing.

'cause my ignorance, but why do we need conveyancing for a remortgage? Get it when you are 'buying' the house from someone, but can't quite understand why I need solicitors for a remortgage?

Because unless you're staying with the same mortgage provider you'll need to discharge one mortgage and have the entry on the LR changed, I can't imagine there's a lender who'll allow you to do this yourself and even if you're staying with the same lender they may insist on sols doing the work.

 

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