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Just re-mortgaged

Discussion in 'General Chat' started by Setenza, Jun 27, 2005.

  1. Setenza

    Setenza
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    In May 2003, I moved to a nice bungalow in Kent. The wife and I had enough cash to pay 50% outright so actually only had to borrow the other half.

    We got a real deal at the time from the Halifax. A 2 year fixed rate at 3.69%, which then after the fixed term period, returned to the Halifax's current base rate.

    Well, two years has gone quick and I recently go the reminder through the post, that the fixed rate runs out after the 30th June. Well, I didn't like the idea of going up to 6.75% and having to cough up an extra £154 per month.

    So, I got on the horn pronto (no smutty doubles please) and within 15 minutes had got myself another 2 year fixed rate mortgage. As an existing Halifax customer, this was an easy process. Now it was inevitable that I'd end up paying more each month, but I've now secured a 5.19% two year deal which means an increase of only £68 per month.

    All things considered, that ain't to bad. My salary has gone up and the cost is covered. Also, I have managed to clear £10K off the original amount borrowed so we're quite pleased.

    Now, I know this whole subject is extremely dull, and I'm reallly showing my age by discussing it, but has anyone else gone through this process recently? I sure some of the smaller building societies can offer even better deals but they really have you jumping through hoops to get them.

    Two years ago we tried to secure a Nationwide mortgage, but they wanted so much detail and 3 years of P60's. This was a problem as my wife had recently secured a pay rise and a change of working hours. We had plenty of documentation, but the Nationwide would only accept proven retrospective financial details. Subsequently, they wouldn't accept the fact that our joint income had increased, so we went else where.

    The Halifax were far more straight forward and even took into account such things as bonuses and ad-hoc contract work. They've been very easy going so subsequently have secured another 2 years of our business.

    So many people are getting bad deals from financial institutions through pure apathy. Moving bank accounts, mortgages, insurance or credit cards does not have to be a mission. You do still need your wits about you, but a day or two researching on the net can really stear you in the direction of some good deals.
     
  2. Ed Selley

    Ed Selley
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    Age isn't an issue here- I'm 24 and off to renegotiate next Saturday. Its interesting to here how you've got on and encouraging on my part as well. If you don't mind me asking, is there any reason why you didn't try for a five year fixed for a slightly higher rate?
     
  3. Astaroth

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    3.69% certainly wasnt bad - even our subsidised employee mortgages are above that (4.3% for 5 years)

    Again I back up that it isnt a old person topic - keep looking at mortgages but have moved arround alot with my career so havent thought it worth the hassel of buying and then having to sell again 12-18 months later. Couple years more and should then be able to 'settle' in London or Edinburgh
     
  4. tomson

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    We remortgaged not too long ago - the main reason was to clear a few credit card debts and free up some money so we could start saving. Originally had a mortgage with Halifax and am now with Nationwide and found both companies very helpful - the remortgage process with Nationwide was trouble free despite me being self employed and not having any proper accounts. We used a financial advisor too - made the whole process a lot more manageable.

    It's probably one of the best things financially we've ever done as it allowed us to start saving and invest in a property in France. The only trouble now is that the credit cards have taken a battering furnishing the place.
     
  5. richjthorpe

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    We've got someone who works for Zurich Insurance as a financial advisor. He gets deals that the normal person wouldn't normally get. All we have to do is go with Zurich for the House and Contents insurance which isn't bad anyway, or if we want another insurance company you pay him a fixed fee.
     
  6. Setenza

    Setenza
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    Tons of fun, I was offered a 5 year mortgage at 5.49%. My gut feeling is that interest rates will rise in late 2006 and could then come down in 2007 & 2008.

    I felt that 5.49% may not be such a good rate by 2010. Also the longer term fixed rate had greater restrictions with regard to paying off additional sums. I am currently supplementing my income with additional contract work and want to have the flexibility to chip away at the outstanding balance.
     
  7. SanPedro

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    Just in the process of remortgaging at the moment.

    went through London and Country who are brokers. They recommended a 5.19 5 year with the Nationwide. No tie ins and no heavy upfront costs.

    Costs are a big issue on 2 year deals, especially if your mortgage is not all that high as the charges can often outweigh any savings made on the lower rate. Always look at the total costs of the switch.

    I do wonder if the 5 year rate will be a good long term bet. But hey... it's still cheaper than sticking on the standard variable. And I know what my costs will be for the next 5 years come hell or high interest rates.

    On the subject of documentation wanted by the society it didn't seem to bad - the usual 3 yrs accounts, details of some buy-to-let properties my wife has, passport, utility bills. All-in-all pretty painless.

    But I'd certainly recomend London & Country. No pressure from them - and no commission charges to pay them either (well not out of my direct pocket any way).

    Chris
     
  8. Ed Selley

    Ed Selley
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    This is exactly my thinking in this regard- I'd rather tie it up for a bit and leave it even if it wasn't the absolute best deal by the end of the fixed period. It must be said I'm also not as confident as Xusia that rates will stay sensible- there's some awful big holes in the nations finances waiting for a chance to show themselves.
     
  9. Setenza

    Setenza
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    This is the good thing about the current mortgage market. There are plenty of products to suit different peoples needs.
     
  10. CooperUK

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    Did mine recently too. Saved about £80 a month overall.
     
  11. RichB14

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    Got it coming up next April again, we change every 2 years without fail.

    We've been with nationwide twice now and I must say that they have been the best building society to deal with by a long way, so much so that I’ve moved all my accounts to them.

    We were previously with the shambles that is also known as Abbey. Probably the worst bank I’ve ever had the misfortune to deal with, never again.

    Don't reckon we will move away from nationwide seeing as they do the same offers for existing customers

     
  12. DJW

    DJW
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    Been on some form of discount scheme for last 10 years. Ususally 2 year deals at a time. I always check around but can't ususally beat Stroud & Swindon, who I've just this week re-signed for a 4.65% tracker for 2 years, with allowance to pay up to 25% off with no penalty. No tie in after 2 yr period.
     
  13. Mr.The.Spoon

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    I bought by house a little under 2 years ago with a 3.91% fixed rate for 3 years. That was with Accord (run by the Yorkshire).
    i used a website called MoneyQuest
    Very easy and helpful. After searching around I'd found a 3.94%. After contacting them they got the slightly lower rate for the same charges.

    Next year when the fixed term runs out, I'll be dong all this searching again.
     
  14. Dr Diversity

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    Always pays to shop around, mortgage lenders depend on those you don't bother
     
  15. shoehorn

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    Tend to go for 2 year discounted/tracker deals - just found one with the Lambeth, 4.49% - Can pay off 10% a year (or stick it into a non-tax-payers ING Direct a/c at 5%!)
    Always change, always take the time - the mortgage market is oversaturated and there are some great deals out there..... you just have to find them... (and it's not that hard to...)
     
  16. SanPedro

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    I'll say...

    we're managing to get some updating on our house paid for by switching.

    The current monthly payment on standard variable is £820 a month

    Borrowing £15K extra on a fixed rate will cost us £730. No brainer really.
     

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