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StewieGriffin

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Had a quick search, couldn't see a thread - if there is one then apologies.

 

Mrs StewieGriffin and I are coming to the end of our first fixed term in early June but we're both not really proper adults and need help with stuff;

Question 1... we should have heard from our bank by now, right? 

Question 2... having navigated the banks website and entered some basic info (money and length of mortgage remaining), they'd offer me a 4.4% fixed - its currently 5.59%, which would save us roughly £50 a month. This is fairly good yes?

Question 3... if looking at switching to another bank, do they basically put you through the entire mortgage process again? (Surveyors, solicitors fees etc)

Thanking you 

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You're current mortgage is 5.59%, and they will now offer 4.4%!

That sounds very high to me... unless you have a very low LTV.

I've been paying 1.49% for the past 7 years, and most people i know are paying between 1.5% and 3%.

I'd think you could get around 2.5% if you shop around.

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also, the bank probably doesn't want to tell you the fixed bit is ending if their standard rate is higher.

they will probably automatically put you onto the higher rate (if its higher) when your fixed bit finishes.

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I am an insurance broker (commercial insurance for large corporations) so know next to nothing about mortgages so when I moved house a couple of years ago and was struggling with my building society I asked the estate agent for some advice and she put me in touch with a mortgage broker 

Strangely this professional adviser gave me some great advice for which he took commission but I ended up saving a load of money taking his advice 

Imagine my embarrassment having to have the advantages of my own profession pointed out to me by someone else 

So my advice is to go and get some professional advice. Yes you will pay for it but it will probably be from commission you don't see and you will get the best deal that way. 

I used oakleaf mortgage brokers in Shirley but I am sure there are many other excellent advisers out there plus some absolute charlatans as well

 

Edited by sidcow
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You are being fleeced, thank your neoliberal overlords. Current bond prices are very low.... due to nice people like the recently resigned Merv. 

US 30yr -- 2.71%

UK 30yr -- 2.40%

German 30yr -- <1%

Ask a German bank for your loan!

 

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Your current mortgage provider will only contact you about 6 weeks before your terms ends. If you are looking to switch then you need to be starting the process about 10-12 weeks before the end of your current deal with your existing provider as you will need to go through all the process from scratch

As for the rate, does seem high? My first mortgage 3 and a bit years ago was 2.44% fixed for 2 years. When that was coming to an end Nationwide (my provider) would do another 2 year fix at 2.19%. I decided on a 5 year fix at 2.66%. I did it all online and took me no more than 10 minutes but that was just simply down to the fact I wasn't looking to borrow more or reduce/extend the term. Any changes like that required another application which was a pain as I wanted to reduce my term by 4 years but couldn't be bothered so just kept it the same for the time being

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Loan to Value of Property is probably the key.

I think all these 2.5% deals need an LTV around 60%, if your relatively new in to this I'd guess you're up in the 90%'s.

FWIW, 2 weeks ago I got myself a 5 year fixed at 2.4% Not the best / cheapest on the market right now, but 5 years of knowing the budget is just so nice n predictable.

It will get better!

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Yeah, we're 93ish i think.

Looking at the option of reducing the payments to 498pm over 37 years (which is our current remaining term) or keeping them the same as they are now - 546pm but that would allow me to reduce the term to 30 years.

Reducing the term is always better surely?

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You'd think that the shorter term and higher monthly cost is better, as long as you can afford the higher monthly cost, as you'll pay less interest in the long run.

But then perhaps it might be better to take the lower monthly cost over a greater period, and instead make additional payments regularly, which go fully against paying off the debt rather than mostly being interest, as the extra would be if you just paid more per month.

**** if I know, this shit's complicated, get the professional advice.

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37 years left! You must have got on the ladder young 

Keep the payments the same and reduce the term. That's SEVEN years knocked off your mortgage. How good does that sound? I know an extra £50 per month in your account sounds appealing but is it really worth extending your mortgage by 7 years?

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1 hour ago, Xela said:

37 years left! You must have got on the ladder young 

Keep the payments the same and reduce the term. That's SEVEN years knocked off your mortgage. How good does that sound? I know an extra £50 per month in your account sounds appealing but is it really worth extending your mortgage by 7 years?

So many people i know remortgaged their homes based on the paper equity they had from its increase in value .. And then spent the money on a new car and a trip to Disney ... The holiday probably would have been cheaper in the long run with a wonga loan  !!

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19 hours ago, Xela said:

37 years left! You must have got on the ladder young 

Keep the payments the same and reduce the term. That's SEVEN years knocked off your mortgage. How good does that sound? I know an extra £50 per month in your account sounds appealing but is it really worth extending your mortgage by 7 years?

Young-ish I guess - got the mortgage 2 years ago when I was 29 and she was 26.

I think the plan right now is to reduce the payment level now to give us slightly more disposable income, and look at reducing the mortgage term next time our fixed term is up when we should both in theory earn more than we do now

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6 minutes ago, StewieGriffin said:

Mini-bump!

Rang our provider today - offered me 2.99% so a monthly saving of £157 :)

Shows how awful interest is on a mortgage!

Nice one, tbh, if I were you and you could afford the current payment I'd reduce the term (didnt you say you had 37 years left?).

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