Fudgey

iTrader: (4)

sorry for more questions people

had out haouse valued by 3 places now, seems to be that the average is 120-125k

we paid 126.500 for it.

anyway, our mortgage is currently 103k with nationwide, now the missus phoned them on friday as a house we like is up for 155k, so if we say get 115k for ours and offer 150k we need to borrow an additional 35k. nationwide will do it on a fixed term of 7.09% - costing us an extra £130 a month! fuck that, as the current rate as we know is 1.5%!!

can you have a 2 seperate mortages with 2 companies etc?

as for 35k we can have between 10 and 20% deposit etc.

its begining to grate that as the interest rate is so low at the moment, yet the mortgage lenders are not passing it on.

this time last year for the same ammount with nationwide, we would have been paying an extra £40 a month, yet couldnt find a house we liked enough!

Psycho Warren

iTrader: (5)

Can you get a 5 year loan for the rest???

Dont know about the second mortgage but both lenders would need to be informed i guess.

The banks dont give a fuck im afraid. They wont decrease interest till they are made to. Protecting thier profits but its shortsighted as it stops a lot of people getting the mortgage they want.

fuzzy

theyre not doing anyone any favours least of all themselves. whos going to sign up to a fixed term morgage at those rates? a year or so ago they were doing 5.7% just for a normal 5 year loan.

matts1

Keep in mind that rates may be extremely low, but (I think I am correct in this), the rates to new lenders/deal is NOT at that low rate.

So, it may be a better all round deal you have know with the main chunk on a lwo rate and the smaller on a higher new lending rate, than switching it all over.

Also, if your not on a fixed, be careful you don't end up with both lumps on a high rate if the rates go up, you will need to look for fixing at a rate that you can afford and be safe, than getting in a mess.

Fudgey

iTrader: (4)

i forgot to sy, our current mortgage is 5.19% and was on a 5 year fixed term, 21 years left to pay off...

that alone is costing us £700 a month, so another £130 on top is a lot imo

surely there is someone better out there?

£35k imo is not a lot, i could get a normal bank loan for 7.9% apr...

Fudgey

iTrader: (4)

matt, we fixed last year as at the time the rates were rising, and we could afford what we were paying

just pisses me off that the same bank are trying to fuck us over

it will cost us about 2k to buy out of our 5 year fixed term, but we probably wont get a rate low enough to make it worthwhile

matts1

my mate is doing the same as you mate on the same figures aswell. he is just sticking with them a riding out the term.

Best bet is to look at all the options, and if need be, maybe look at spreading the additional amount over a longer term - 35 years on a fixed for the time left on the large amount. Then, at the of this term (3 year?) then switch for the whole lot onto one rate.

I know that making it over 35 years seems odd, but it may lower your costs for the next couple of years making it affordable until you can take out one deal.

Just an idea.

Maria.

Fudgey - No, you cant get two mortgages im afraid.

And dont forget, if you ook out a personal loan, then the mortgage lender would take that in to consideration, and would then probably reduce the LTV amount by what ever your personal loan is for.

focusv8

When you sell your existing house the mortgage will have to be paid off with the proceeds of the sale.
Then your new mortgage and the remainder of the sale proceeds pays for the new house.

I doubt whether you will get the existing rate for the 103 transferred onto the new larger mortgage.

The whole of the new mortgage will be at the higher rate, plus as you know you will have to pay a penalty for ending early and the same will happen if you move early next time.

You need to look everywhere to find the best rate, you don't have to stay with your existing lender.

Fudgey

iTrader: (4)

gayness.

the banks are all a bunch of robbing cunts.

just had the parpework from nationwide for the last year.

after paying off 8.5k... we have actually reduced our mortgage by 2.5k..

fucking sucks arse!

we still have 4 years left on the 5.19% fixed rate paying £700 a month on a 21 year loan, and the other £35k nationwide said we can have would be an additional £130 a month on a 2 year fixed 7.09% rate and 30 years.

matts1

just going to have to do a bit of searching round and find out all the option, just don't get into anything risky mate, imo it is better to know what your paying and not be at the mercy of rate etc.

focusv8

If they are prepared to transfer the 5.19 rate to the new mortgage, they must be trying to keep your business.

Try elsewhere, see if you can better the overall rate, term and payment, then go back to your existing lender.
They may find a better deal for you.

.

wayne thomas

I doubt anybody else will better them. There will almost certainly be penalties for getting out of your fixed term 4 yrs early, 3-4k I'd bet, which equates to around 30 months worth of payments on your proposed 7.09% additional advance!! Then add arrangement fee with new mortagage company.
To my mind that leaves you 2 choices, stay with your current lender or stay with your current house.

Paul Eggleton

YOu could up the term to 25+ years for a short period until you are better off. I wouldn't get hung up about the term when you are only going for a short term deal. YOu can always lower it when you circumstances change.

We started at 30years.

studabear

arrangment fee's are very high at theminute also

foreigneRS

as long as you do only do it short term as the interest mounts up a lot with those extra years. we also started at 30 years, but are now down to 20 and the base rate is 3.5% on the nationwide standard variable

dojj

iTrader: (3)

in the last 2 years,, roughly 55% of my payments have been for the intrest on the loan, the mortgage total ammount has only gone down from £180k to £168.5k

only if he were to change anything about the mortgage

best bet would be to ask the bank itself what the scores are if you were to think about moving house and what they would be prepared to do for you if you were moving

if you have had no problems in the past i can't see them being problomatic

at least if they are you'll know about it before you get shafted

Renton

The base rate might be 1.5%, but you're unlikely to find anyone lending at any less than 4% - and that would only be to someone with a big chunk of equity in their house.

What you're basically saying above is "I want a 90% mortgage and I've been offered one at 7.09%, but I want the same rate as someone with a 60% mortgage".
Which is something you're just gonna have to deal with.

This time last year you could have got a better rate, but this time last year, that 155k house was 175k... Talk about want your cake and eat it!

PS Have you actually spoken to an independent financial advisor about a mortgage? They do all the shopping around work for you, usually for FREE!

Cragrat

iTrader: (4)

just got off the phone to my business advisor (naff vest) we were discussing situation regards people not having work done as they arent able to borrow anything at the moment,he says oh we have a mortgage rate of 3.3%,bloody hell i say but what deposit?,`only` 25% was the reply!

i`ll have one of them before everyone else does then cos we all have that much spare cash!

wayne thomas

You mean like the property it was secured against

It's Czech Mate

The problem is your loan to value.

The banks wont lend at a low rate because its not worth the risk.

The risk is, the higher the loan to value the more likely that is to become even higher as the house prices continue to fall. ( estimated another 9-12% for 2009 with a 1.5% increase by the end of 2010 ) So you're still a big risk to the bank regardless of the cost of borrowing the money, its the risk the bank has to bear whilst the prices are volatile.

Thing is, its their stingy lending now not allowing the housing market to stabilise!

DanW@FastFord

iTrader: (1)

We did, albeit from the same company. We had two separate fixed mortgages.

BRAMMER

iTrader: (23)

It appears that my missus working in a bank has come in financially handy as our mortgage has just gone through, 2 year fixed @ 3.14% or we could have had 3.99 for 5 years but she doesn't get charged arrangement fees so we said we'll review in 2 years and then fix it for a longer period of time.

dojj

iTrader: (3)

or the time to pay it back
or anything the like really

they are just robbing greedy bar stewards