Mortgage questions
Discussion
Apologies for the potential daftness of the question, but typically how close to the end of a fixed term is it worth contacting a broker / investigating options for re-mortgaging / fixing again?
I am currently on a 3yr fixed term that ends May-19, on a 35yr repayment mortgage taken out in 2016 (I moved in on the day of the Brexit referendum- I was sat in a deckchair in my almost empty lounge on the Friday morning, waiting for my fridge to arrive, watching the news of the result unfold wondering if my newly acquired property was about to plummet in value...)
My fiance moved in early this year and we would like to transfer the house into joint names at some point. I am also keen to (hopefully) improve on the 4.29% rate I was stung with at the time, a result of needing to use the shared ownership scheme (50% equity) and only having a 10% deposit where almost all lenders at the time required 15% under that scheme.
Plans are to stay here for at least another 6-7 years, and we are likely to be in a position to purchase the remaining 50% outright within 2 years tops, so requiring short-term flexibility isn't too much of an issue.
So having never been in this situation before, how soon is too soon to start inquiring/potentially get something in place? Should I be talking to Sarnie?!
I am currently on a 3yr fixed term that ends May-19, on a 35yr repayment mortgage taken out in 2016 (I moved in on the day of the Brexit referendum- I was sat in a deckchair in my almost empty lounge on the Friday morning, waiting for my fridge to arrive, watching the news of the result unfold wondering if my newly acquired property was about to plummet in value...)
My fiance moved in early this year and we would like to transfer the house into joint names at some point. I am also keen to (hopefully) improve on the 4.29% rate I was stung with at the time, a result of needing to use the shared ownership scheme (50% equity) and only having a 10% deposit where almost all lenders at the time required 15% under that scheme.
Plans are to stay here for at least another 6-7 years, and we are likely to be in a position to purchase the remaining 50% outright within 2 years tops, so requiring short-term flexibility isn't too much of an issue.
So having never been in this situation before, how soon is too soon to start inquiring/potentially get something in place? Should I be talking to Sarnie?!
Contact sarnie on here, sorted me very well for my first mortgage which was shared ownership (and subsequent - not SO)
One thing, what is the current market value? Of the share and the whole?
If it’s gone up sufficiently and you meet the borrowing criteria there may be an option to staircase and refinance the mortgage to include the 50% option, maintaining 10% (total) equity (depending on how much the value has gone up) and getting a better rate by opening up more options.
May be something to look into?
One thing, what is the current market value? Of the share and the whole?
If it’s gone up sufficiently and you meet the borrowing criteria there may be an option to staircase and refinance the mortgage to include the 50% option, maintaining 10% (total) equity (depending on how much the value has gone up) and getting a better rate by opening up more options.
May be something to look into?
kiethton said:
Contact sarnie on here, sorted me very well for my first mortgage which was shared ownership (and subsequent - not SO)
One thing, what is the current market value? Of the share and the whole?
If it’s gone up sufficiently and you meet the borrowing criteria there may be an option to staircase and refinance the mortgage to include the 50% option, maintaining 10% (total) equity (depending on how much the value has gone up) and getting a better rate by opening up more options.
May be something to look into?
Good points.One thing, what is the current market value? Of the share and the whole?
If it’s gone up sufficiently and you meet the borrowing criteria there may be an option to staircase and refinance the mortgage to include the 50% option, maintaining 10% (total) equity (depending on how much the value has gone up) and getting a better rate by opening up more options.
May be something to look into?
Value is tough to gauge- it's a new build site where the majority of people completed April-15. I got one of the final houses in June-16 but my house had been sat empty since at least October the previous year so possibly an earlier purchase had fallen through. An identical house subsequently sold in Dec-16 for £50k more than my house had been 'priced' at when I moved in 6 months earlier - which made me wonder whether I had got lucky and had effectively paid the April-15 price (fixed for the development?) in June-16.
It seems highly unlikely that a developer would forgo that kind of profit just because of a much later than expected sale, but in the context of the area it seems equally unlikely that the house saw a 20% value increase between Jun-16 and Dec-16. We are talking Oxfordshire though, so who knows.
Either way, even if I got lucky and my house value did somehow increase £50k in that time (and assuming it's remained flat since), the £25k (50% share) extra equity in the house wouldn't be sufficient to re-finance the mortgage to the full 100%. In any case, when we are in a position to purchase the remaining 50%, a decent portion of that will be via a lump sum rather than full mortgage- so I suspect a short-term fix until that point might be the best option.
Lots to consider though.
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