Found 7th May 2008
Hi fellow hotdealers,

I'm coming up to my first mortgage renewal after taking out a decent rate tracker with Abbey little under 2 yrs ago. So we still have a fair chunk of a mortgage to pay off. I've read remortgaging guides on websites like moneysavingexpert but this all seem a little out of date given the recent changes in economy. Now banks and effectively trying to put off new lenders by whacking up there interest rates.

Can anyone point me to recent mortgage advice? or any particully good mortgage deals/leandes at the moment?

Thanks,

Scottyb

26 Comments

take a look at hsbc there lifeterm tracker seems to be one of the best offers at the moment (im also in processof remortgaging so have trawled the internet for deals.)

Speak to a good whole of market broker - all the good deals (which are few and far between now) are being snapped up in seconds.
Either that or get a flexible deal you can switch easily later on.

speak to an independant insurance broker, normally free as they get paid from the mortgage company, these guys can normally give you better rates than the actual banks

MANJ_007;2050630

speak to an independant insurance broker, normally free as they get paid … speak to an independant insurance broker, normally free as they get paid from the mortgage company, these guys can normally give you better rates than the actual banks


I hate to point out the obvious but insurance brokers sell insurance (and charge approx £20 than going direct). Brokers paid for by a bank only search their banks' deals so you might not get the best deal.
Whole of market brokers do charge but are impartial.

The Bradford and Bingley website offer independant advice from hundreds of mortgage suppliers.

I'm currently paying over 7%, and I could get a 5.25% although with the fees and stuff, it will take over a year to make up that lump sum paid out to change it. So I am waiting for the rate to drop a bit more until I renew to lower rates, and then go from there.

Banned

Before you waste any time at all, you should check your current mortgage does not have any redemption fees as some charge extortionate amounts.

I am waiting in the hope of another rate drop as I have gone on a tracker until rates drop more

Is that one account with the mortgage shrinker any good?

oneaccount.com/

That would depend entirely on your circumstances.

Banned

diceyjase;2050848

Is that one account with the mortgage shrinker any … Is that one account with the mortgage shrinker any good?http://www.oneaccount.com/


Depends if you are good at controlling expenditure

seancampbell;2050645

I hate to point out the obvious but insurance brokers sell insurance (and … I hate to point out the obvious but insurance brokers sell insurance (and charge approx £20 than going direct). Brokers paid for by a bank only search their banks' deals so you might not get the best deal.Whole of market brokers do charge but are impartial.



Nah mate, the chap i go my mortgage through gave me a better rate than nationwide themselves could offer on their own product because he works for Zurich and they sell thousands of mortgages. Also didnt cost me a penny, he showed me the paperwork from Zurich saying that Nationwide would pay him £XXX for arranging a mortgage. Its worth asking there may be some good deals out there

You're missing the point - Zurich will be affilliated with certain lenders thus he will only check those who will pay his commission. Yes it may be better than direct however it may not be better than the rate found by looking at the entire market. Whole of market brokers look at ALL the deals because they are paid by you if you take a deal so it is in their interest to find you the best rate. Let a couple look for you, then see if it is cheaper direct, if not go for it. Affilliated Brokers look at their affilliates, and find the best deal out of those that will give them a money. They don't look at everyone so will not always get the best price (though sometimes they may).

Sorry to hijack the thread OP, but I have a related question. I've moved to a intrest only mortgage for a while, and I believe I can pay off 10% a year without penalties. Is this generally a good idea if I have a couple of grand saved up? Or should I invest it somewhere else?

Depends - how much interest (post tax) would you get on the money (in the best high street bank or ISA if you don't have one maxed), and how much interest would be saved (how quickly is the rate adjusted). Do you need easy access to it, for example in an emergency?
Are you willing to risk losing money or do you prefer a more certain lower debt?

seancampbell;2051799

Depends - how much interest (post tax) would you get on the money, and … Depends - how much interest (post tax) would you get on the money, and how much interest would be saved (how quickly is the rate adjusted). Do you need easy access to it, for example in an emergency?



I don't know how much will be saved really as I'm a bit useless at maths. It will only be a couple of grand (max 4) which will be a one time thing for the while, as I don't forsee being able to afford to do it again for a while.
Its a £100k mortgage at 6% intrest only, which works out to be £470 a month.

So 6% saved of max 4k = £240 less interest per year.
4k invested in an ISA nets 5.65% max using MSE calc (assuming you don't have one) earning £226, so you'd be plus £14 per year but not have the cash at hand should you have a crisis. Is it worth it? Possibly but saving isn't huge.
However if you already have an ISA then tax would be paid on interest making the savings larger.

seancampbell;2051899

So 6% saved of max 4k = £240 less interest per year.4k invested in an ISA … So 6% saved of max 4k = £240 less interest per year.4k invested in an ISA nets 5.65% max using MSE calc (assuming you don't have one) earning £226, so you'd be plus £14 per year but not have the cash at hand should you have a crisis. Is it worth it? Possibly but saving isn't huge.However if you already have an ISA then tax would be paid on interest making the savings larger.



Thanks for the advice sean :thumbsup:
I think I'll maybe put in around 3k and leave myself 1k in a ISA for a cushion.

No problem. ISA's are worthwhile but read the small print - some have penalties for withdrawals/ multiple deposits etc that it's good to be aware of.

Banned

MoneySavingG;2051927

Thanks for the advice sean :thumbsup:I think I'll maybe put in around 3k … Thanks for the advice sean :thumbsup:I think I'll maybe put in around 3k and leave myself 1k in a ISA for a cushion.


Didnt know you could easily make repayments on to an interest only mortgage. best check there isnt any redemption fees with the lender.

csiman;2052323

Didnt know you could easily make repayments on to an interest only … Didnt know you could easily make repayments on to an interest only mortgage. best check there isnt any redemption fees with the lender.


Post 14

I can pay off 10% a year without penalties

csiman;2052323

Didnt know you could easily make repayments on to an interest only … Didnt know you could easily make repayments on to an interest only mortgage. best check there isnt any redemption fees with the lender.



I think there are no fees, this is from my documents:

As a concession, in any one year you may repay up to 10% of the amount … As a concession, in any one year you may repay up to 10% of the amount outstanding on your special rate mortgage product without having to pay an early repaymeny charge.


Also it seems the reduced interested kicks the same day they receive the funds which is nice.

Looks pretty good then MoneySavingG! Quite a fair clause really.

Banned

Go for it. Always a good idea to reduce the capital outstanding in times of financial good.

call Abbey's retentions department first, before you decide to remortgage. they offer deals for existing customers which, while they may not be a rate as low as another lender, they normally don't have the same level of costs as you would have to pay for moving your mortgage.

0800 028 0064

Original Poster

Cheers, for the comments.
After going through mortgage paperwork, we're on just under 5% now, if i do nothing it'll be 7% (Abbey's standard rate which rises and falls as they see fit), I can remortgage, after the 2 years is up for no fee. before that is 3% fee (ouch).

We do have a mortgage adviser but he's having to charge £150 for looking around and finding the best deal coz he doesn't get the commission if we stay with same mortgage lender and sign for better rate. I need to check but I assume the fee will be waved if we take out a new mortgage.

I'll check out HSBC, also looking in the to OneAccount. and call Abbey's retention dept to see what they can offer.

Original Poster

Went hsbc in the end 6.19% fixed (although they put them up the other day), as Abbey's rentention rates were poor 6.89%.
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