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Ribenapigeon
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PostPosted: 10:38 - 23 Nov 2022    Post subject: Re Mortgage shopping? Reply with quote

My Mortgage deal ends in february so I need to shop around. Whats the best way? Any tips for getting the best deal? any pitfalls to look out for?

Cheers.
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Diggs
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PostPosted: 10:47 - 23 Nov 2022    Post subject: Reply with quote

Sadly, buy a Tardis... Sad
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Polarbear
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PostPosted: 11:48 - 23 Nov 2022    Post subject: Reply with quote

I would certainly go and talk to an expert about it if it was me. It's just manic now in the financial markets.
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Rob Fzs
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PostPosted: 12:00 - 23 Nov 2022    Post subject: Reply with quote

Going to see an advisor tomorrow night about it, kick in the bollocks from 2% to a definite 5%
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Paddy.
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PostPosted: 12:19 - 23 Nov 2022    Post subject: Reply with quote

I'm praying it starts going down in 4 years as we magically got ours locked in (at what looked shit at the time but oooh boy) at 2.4 Shocked

I really REALLY don't fancy anyones chances right now. Crying or Very sad
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Nobby the Bastard
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PostPosted: 12:55 - 23 Nov 2022    Post subject: Reply with quote

I would be looking at the shortest deal you can find so that you aren't locked into 5 or 6% for moe than a year or two in the hopes that it goes down again. Fortunately I'm in a similar position as Paddy.
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Islander
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PostPosted: 13:30 - 23 Nov 2022    Post subject: Re: Re Mortgage shopping? Reply with quote

Ribenapigeon wrote:
My Mortgage deal ends in february so I need to shop around. Whats the best way? Any tips for getting the best deal? any pitfalls to look out for?

Cheers.


I'd be having a quick look to see what Martin Lewis has to say and then probably consulting an IFA.

Whatever happens, I hope you get a better deal than you did with your leccy...
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Ribenapigeon
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PostPosted: 13:36 - 23 Nov 2022    Post subject: Reply with quote

A quick look at comparison sites seems that two years is as long as lenders are fixing for. Then there's the matter of fees. Im not too worried as I only have 5 years left and the outstanding amount is pretty low so even if rates hit 6% I would only be looking at a few tens of £`s a month extra, but still a deal is a deal and over a couple of years a few quid a month could be sent on bike upgrade
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Rob Fzs
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PostPosted: 13:57 - 23 Nov 2022    Post subject: Reply with quote

You'll get a 5 year fix with an advisor, but there's no much in it rate wise
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Ribenapigeon
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PostPosted: 15:03 - 23 Nov 2022    Post subject: Reply with quote

Its like gambling but on invisible horses Shocked
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stinkwheel
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PostPosted: 15:16 - 23 Nov 2022    Post subject: Reply with quote

It's all a big gamble.

Remeber "Normal" interest rates are more like 5-7%. They have been abnormally and outrageously low since the banking crash in 2008.

So you could fix and they may go up and you win the bet or you could fix and they go back down and you lose the bet.

I thinkthe right answer for a lot of people is to fix at what they find is still affordable with a short term deal for now. Then you aren't going to get bummed if there's a real short-term spike in rates.

It may also work out cheaper to go with a deal offered by your current provider, even if it's not the best interest rate because the fees can come to more than you'd save.

Personally, I'm leaving mine to drop to SVR at the moment. I'm in a good position financially just now and I reckon the best thing for me to do is get the whole thing paid off as quickly as possible. I'm in a position to make some significant overpayments and the quicker the capital comes down, the less I'll land up paying overall. If I go for a fixed deal, they usually have a maximum overpayment of 10% which I already ran into before the current rise in rates.

I'm also in a position to be able to take a gamble that rates will drop again. If they go very low again, I'll probably take a fixed deal and stick the overpayments into a savings account ready to dump into the mortgage when that deal is finished. My fixed deal finishes next month and I have about 18 months worth of overpayments in a savings account ready to drop into it.

The way things are going with one thing and another, I'm starting to realise I want to do a whole lot less work and have more time to do things while I'm still able to. I've also realised I don't need a huge amount of money to achieve that. Take the mortgage out of the equation and Mrs stinkwheel and I can live comfortably on a single wage so my main aim for the next few years is to dump as much as possible into the mortgage so we can both drop onto half our current working hours by the time I'm 50.
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Ribenapigeon
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PostPosted: 19:51 - 23 Nov 2022    Post subject: Reply with quote

Im thinking my current provider though more expensive is cheaper in terms of fees and i will rock the overpayment to the max to knock a good bit off the capital. With a bit of luck i could maybe halve the remaining term.
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arry
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PostPosted: 21:34 - 23 Nov 2022    Post subject: Reply with quote

Ribenapigeon wrote:
Im thinking my current provider though more expensive is cheaper in terms of fees and i will rock the overpayment to the max to knock a good bit off the capital. With a bit of luck i could maybe halve the remaining term.


Have a look at an Offset mortgage if you can. Not sure what the current market is for them as I locked into a 5 year fix in the summer (one of the only times I've ever got timing right....), but if you're thinking about spanking over-payments then it's fantastic. Goes into a separate bank account, the balance of which offsets the interest on the same amount of your mortgage owed balance.

With traditional mortgages you overpay (normally up to 10% allowed) and you've 'lost' access to that money for good. With an Offset, you can pile in as much as you like into the 'savings' account and stop paying interest on however much you have in there. But the key bit is that you can draw down from what you've saved if you happen to hit the skids.

As an example, say I have ~£150k outstanding on mortgage, and ~£50k in offset savings. I'm paying 2% on £100k in the difference. I can overpay whatever I like without penalty, and if I want to take £25k out to do something frivolous with then I'm able to do that at any point without arranging any new loans.
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BanditsHigh
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PostPosted: 22:01 - 23 Nov 2022    Post subject: Reply with quote

I'd just keep on looking around to see what's coming up, it's all over the place at the moment, but as others have said I wouldn't go for any more than 2 years fixed!

I was lucky in that I decided to try and re-mortgage (for the first time) last year, managed to close the deal in November, while in hospital for heart attacks ... fixed for 5 years at 1.24% ... previously I was on 4.5%.

I'm potentially screwed in another way, my private pension ... I thought fuck it and retired in April this year after kicking the bucket earlier in the year, using my private pension to keep me going ... just as pensions tanked of course... there should be enough to pay the mortgage off, but not enough to get me to pension age ... will see what happens.


Hope things work out for you (and everyone else) Thumbs Up
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Ribenapigeon
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PostPosted: 10:11 - 24 Nov 2022    Post subject: Reply with quote

Any tips for finding a mortgage advisor?
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BanditsHigh
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PostPosted: 10:24 - 24 Nov 2022    Post subject: Reply with quote

Try typing 'Mortgage Advisor' into a search engine Thumbs Up
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Ribenapigeon
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PostPosted: 22:28 - 24 Nov 2022    Post subject: Reply with quote

BanditsHigh wrote:
Try typing 'Mortgage Advisor' into a search engine Thumbs Up


You hear stories about dodgy advisors who rip people off though. How do get a legit one.
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arry
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PostPosted: 08:30 - 25 Nov 2022    Post subject: Reply with quote

Ribenapigeon wrote:
BanditsHigh wrote:
Try typing 'Mortgage Advisor' into a search engine Thumbs Up


You hear stories about dodgy advisors who rip people off though. How do get a legit one.


Recommendations from friends and people that have used one before that you trust the opinion (or the cold facts of the matter) of.

That's how I found mine and he's looked after me for nearly 20 years now.

In general for mortgages they can't really rip you off. They're going to recommend a deal and you'll not pay them a penny - they earn commission direct from the provider. You have the opportunity to search for alternative products and inform your own decision on what they've recommended to go with, as to whether it's competitive and is best suited to your needs.

It's not like pensions where you're giving them your money and things can go quickly sideways.
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Rob Fzs
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PostPosted: 12:15 - 25 Nov 2022    Post subject: Reply with quote

just got a 3 year fix of 4.77% off Halifax, not great, not terrible
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Ribenapigeon
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PostPosted: 13:07 - 25 Nov 2022    Post subject: Reply with quote

Rob Fzs wrote:
just got a 3 year fix of 4.77% off Halifax, not great, not terrible


Did you compare with others? If so what was the spread of deals out there
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Rob Fzs
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PostPosted: 13:35 - 25 Nov 2022    Post subject: Reply with quote

Ribenapigeon wrote:
Rob Fzs wrote:
just got a 3 year fix of 4.77% off Halifax, not great, not terrible


Did you compare with others? If so what was the spread of deals out there


Broker showed us a spread sheet of everything available, mostly 5% +
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stinkwheel
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PostPosted: 14:44 - 25 Nov 2022    Post subject: Reply with quote

There are also fixed deals with discounted SVR out there. Best I was offered was SVR -2.15% for 2 years. Currently sat at 4.9% with my broker.

Maybe splits the difference between flxed and SVR? It can go up too but is obviously lower than standard rate. They could also land up truly shooting themselves in the foot if rates go down with this one!
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Ribenapigeon
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PostPosted: 18:46 - 26 Nov 2022    Post subject: Reply with quote

stinkwheel wrote:
There are also fixed deals with discounted SVR out there. Best I was offered was SVR -2.15% for 2 years. Currently sat at 4.9% with my broker.

Maybe splits the difference between flxed and SVR? It can go up too but is obviously lower than standard rate. They could also land up truly shooting themselves in the foot if rates go down with this one!


Rather suggests they don't believe it will do.
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ThunderGuts
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PostPosted: 08:36 - 29 Nov 2022    Post subject: Reply with quote

As above, see what your current lender can do; you don't have to mess around with mortgage valuations and the other faff associated with transferring the debt to a different lender.

stinkwheel wrote:
If I go for a fixed deal, they usually have a maximum overpayment of 10% which I already ran into before the current rise in rates.


Check the small print; ours (Newcastle) allows up to £499 a month PLUS the 10% per annum. Works out at a level of overpayment in excess of what we would ever need. There is another trick too (which we're fortunate enough to be in a position to utilise);

When we transferred from our last deal to our current one (a few months back), there was a 7 day window at the start of the new deal where we could make unlimited overpayments. Clearly a benefit in itself, but the secondary benefit is if you do make an overpayment, unless you tell the lender to do a recalculation, they will retain your direct debit payment at the same level, even though the actual monthly payment needed for the mortgage term has dropped because the debt has reduced. This means you effectively have a "built in" overpayment that doesn't affect any additional overpayment allowed. At any time, you can ask them to recalculate, so if you found you wanted to reduce your payments for whatever reason, you could ask them to recalculate the monthly payment and they'd drop it to account for the lower level of debt. I am assuming this is all fairly generic and not specific to our lender of course, but it does mean you can make some hefty savings in interest.

So for example, let's say the standard mortgage payment is £700 a month on the new deal. Your lender allows a £200 a month overpayment. If you chip in some capital (the other way to do this of course is to drop to the SVR for a few days), the recalculated monthly payment might be £600 a month, but if you don't ask them to recalculate, you'll still be direct debited £700 a month and you'll still have the £200 overpayment allowance on top of that. But you're effectively overpaying £100 a month already, so in reality you're able to overpay £300 a month without penalty.

Bizarre tbh but hey it works. Thumbs Up
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Nobby the Bastard
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PostPosted: 09:15 - 29 Nov 2022    Post subject: Reply with quote

Normally the lender will ask wether you want the length of the term shortened or the amount paid monthly altered when you make an overpayment.
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