Current mortgage deal is about to end - Suggestions please
Discussion
Seeing as there is a lot of talk on here at the moment about the mess of the money markets, I thought I'd get some siggestions as how to best position myself for the next few years. The current situation is as follows:
House is worth in the region of £180/200k, with 98k outstanding on the house, and 18 years left to run.
I did have plans to extend (kitchen into kitchen andvdining room), but don't really want to have to pay the extra the £25k i'd need to cover it all.
So i'd planned to take about £10k extra to do up a few rooms, and pay off half the debt I have (the rest is paid off from savings at the end of the 0% term)
Other debts would be the car, which is being paid back to the bank of Dad (terms & conditions are great!
) running it is a large expense and the rate it's loosing money I'm happy to keep it as it's the one 'asset' I actually enjoy.
So what's the best way to set myself straight for the next few years? I like the idea of a longer term deal with a larger fee for about 5 years (4.99% fixed with 2% fee) or is the thinking to look at a couple of years and re-evaluate hoping rates will be lower to stimulate growth?
other factors that could be worth considering:
Girlfriend has a 1/3 share in a house with her bro and his GF.
Just been offered a job in Europe, being paid in Euros, so I could rent the house out...
Any thoughts welcome
House is worth in the region of £180/200k, with 98k outstanding on the house, and 18 years left to run.
I did have plans to extend (kitchen into kitchen andvdining room), but don't really want to have to pay the extra the £25k i'd need to cover it all.
So i'd planned to take about £10k extra to do up a few rooms, and pay off half the debt I have (the rest is paid off from savings at the end of the 0% term)
Other debts would be the car, which is being paid back to the bank of Dad (terms & conditions are great!
) running it is a large expense and the rate it's loosing money I'm happy to keep it as it's the one 'asset' I actually enjoy.So what's the best way to set myself straight for the next few years? I like the idea of a longer term deal with a larger fee for about 5 years (4.99% fixed with 2% fee) or is the thinking to look at a couple of years and re-evaluate hoping rates will be lower to stimulate growth?
other factors that could be worth considering:
Girlfriend has a 1/3 share in a house with her bro and his GF.
Just been offered a job in Europe, being paid in Euros, so I could rent the house out...
Any thoughts welcome
The sentiment on interest rates is definitely downward, there is no guarantee on mortgage rates but I would have thought with the decent LTV you have, there are some good deals.
Don't dismiss an arrangement fee in exchange for a lower APR, as long as the fee is less then the difference on the APR between that and a £0 arrangement fee APR.
Personally, my next move is to switch to the SVR but the term on my current mortgage isn't up until Q3 next year.
At the mo, it's about three things.
a) the sentiment on interest rates.
b) potential for a declining valuation triggering a higher LTV.
c) availability of good fixed rates.
Don't dismiss an arrangement fee in exchange for a lower APR, as long as the fee is less then the difference on the APR between that and a £0 arrangement fee APR.
Personally, my next move is to switch to the SVR but the term on my current mortgage isn't up until Q3 next year.
At the mo, it's about three things.
a) the sentiment on interest rates.
b) potential for a declining valuation triggering a higher LTV.
c) availability of good fixed rates.
There are a couple of IFA's on here, and they will sort you out.
I spoke with mine this morning and I would get in quickly as with Lehman Bros troubles, money is a little harder to find right now.
I'm going for a base rate tracker with the C&G, but take advice, it will depend on your circumstances......
T-J-K
PS Advice is free usually, they make a fee from arranging the mortgage
I spoke with mine this morning and I would get in quickly as with Lehman Bros troubles, money is a little harder to find right now.
I'm going for a base rate tracker with the C&G, but take advice, it will depend on your circumstances......
T-J-K
PS Advice is free usually, they make a fee from arranging the mortgage
Pretty much veryone I work with now has an HSBC tracker mortgage at approx .89 above base. There are absolutely no set-up/arrangement fees, no tie-in and no penalty when it comes to leaving. Obviously the benefit of this will be the opportunity to 'jump-ship' when borrowing returns to a more desirable level.
215cu said:
Don't dismiss an arrangement fee in exchange for a lower APR, as long as the fee is less then the difference on the APR between that and a £0 arrangement fee APR.
By this you mean if the SVR is less than the deal with the fee up front per month?
theboyfold said:
215cu said:
Don't dismiss an arrangement fee in exchange for a lower APR, as long as the fee is less then the difference on the APR between that and a £0 arrangement fee APR.
By this you mean if the SVR is less than the deal with the fee up front per month?
Say you have one deal fixed at 6.49% for five years with no arrangement fee.
Another at 6.29% for two years with a £499 fee.
So, on the amount borrowed what the difference per year in interest (0.2% times the amount you borrowed) * the number of years fixed.
That gives you the best fixed rate.
Or use the SVR and the fixed + arrangement fee as well.
Works for me.
Easier to go SVR if the sentiment for interest rates is downwards, however, in these uncertain times, fixed is less of a worry.
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