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Remortgaging. Thrilling I know, sorry.

(18 Posts)
BestOption Wed 18-Oct-17 12:38:00

I want to remortgage asap. I'm currently on Interet Only & would now like to move to a Repayments Mortgage & add £20k to the mortgage. LTV would still be still 60%.

I can't decide how long to fix for? 2/5/10/life. I'm just interested what other people are currently thinking. I was going to go with 2 years, but with all the talk about interest rates rising & Brexit I'm considering 5/10/life

Plus I need to find a bank that does 'consent to lease' as I might need to rent it out in a year, for a year.

First Direct has a good rate, 10 year, unlimited overpayments, very reasonable early repayment fee, but doesn't do 'consent to lease' as routine, only in exceptional circumstances (people in the Forces etc).

What are other people fixing at?

AutumnGlitterBall Wed 18-Oct-17 13:17:38

We fixed for three years with Yorkshire Building Society at 2.79%. Up to 10% in overpayments a years and portable if we decide to move (we won’t). Went for three years as interest rates aren’t going to get any lower and we wanted to have as much paid off as possible before we have to go to a SVR or remortgage again. We’ve both been there with 6% rates so don’t want to do it again.

Bobbybobbins Wed 18-Oct-17 13:30:02

We fixed for 5 years to give us some breathing space. I don't know for sure but think you need a different type of mortgage altogether if you are going to let it out? Might affect how long you can fix for.

rachrach2 Wed 18-Oct-17 13:35:11

We are just about to remortgage and borrow an additional amount for an extension. We are going for a 5 year fixed at 1.69%. We have no plans to move or lease though. We are using an independent mortgage advisor.

BestOption Wed 18-Oct-17 13:45:23

Thank you

Autumn. Was there a reason you went for 3, not 5?

Bobby. Some Lenders require you to change to a Buy To Let mortgage. They're more expensive. Some offer the 'Consent to lease' for a year or two. Mostly these don't change your rate or anything.

rach. How did you choose your Independant Advisor? I met one about a month ago but he wasn't great. He just pushed NatWest because they're easy for him to get. I've rung around a few, but not inspired by any of them. Who will your mortgage be with?

rachrach2 Wed 18-Oct-17 13:58:28

I’m a member of quite a few local Facebook sites so I searched mortgage advisor on there for recommendations and the same two names kept coming up so I contacted one of them. It will be with TSB.

ShowMeMySilverLining Wed 18-Oct-17 14:03:38

Just doing this - have gone for 5 years. London and Country have always been good for me and using them again this time, fee free as they take it from the lender.

BestOption Wed 18-Oct-17 14:15:27

rach. Thanks. I don't do FB. One of the few times it might actually be useful however!

showme. Thank you. Maybe I should just stick to 5 years. With Brexit 10 years is looking tempting though 🤔

User5trillion Wed 18-Oct-17 14:19:12

We used a local mortgage adviser who we have used previously. Personal recommendations are always good.

We have just fixed for 2 years. We have a repayment only mortgage on a btl and with the change in tax rules concerning taxable income we may well sell in 2-3'years so we didn't want to tie ourselves in.

We redid our residential mortgage, its relatively small and fixed for 2 years as we may off when we sell the btl. Also we didnt need to pay any fees to set up whereas for a longer fix we would have done. We are frantically making overpayments on our residential mortgage and in 2 years should have paid off 20%. It will be a hard 2 years but hoping that if mortgage rates rise we will have a much smaller mortgage or will have paid it off with the proceeds of the sale of btl.

Ideally on our residential mortgage we would have fixed for longer but as we are unsure what we will do and job situations the flexibility is key

delilahbucket Wed 18-Oct-17 14:20:24

We came off a tracker and fixed for two years last week. After two years we will be in the next LTV bracket and the two year fixed deals are always the lowest so unless we are planning any major changes where we would like the security of a longer fix, we are sticking with two years.
It really does depend on your personal circumstances and a good mortgage adviser will be able to tell you which way to go. Beware of any broker who sways you towards a two year fixed. It is best for them as you will be back in two years earning them more comission but it might not be best for you.

AutumnGlitterBall Wed 18-Oct-17 14:38:06

We went for three years as we thought it would cover us to beyond brexit without tying us in for too long. By the end of three years, we should be looking at a 75% mortgage when we next remortgage which will give us a more preferable rate to the current 90% one. I was on a five year fix before at 6% (on a different house) and I couldn’t take advantage of hitting a higher equity point without buying myself out at thousands of pounds.

JoJoSM2 Wed 18-Oct-17 17:50:56

We have low ltv so like PP, fixed for 5 years at 1.69%. I think 10 year deals were 2.5 or 2.7% at least and we didn't want to pay all the extra interest and we're looking to overpay anyway. When it's time to remortgage in 5 years, there shouldn't be much outstanding.

We also wouldn't have considered 2 or 3 year deals as we wanted stability over the worst of Brexit (pure fear factor).

KanbanFan Wed 18-Oct-17 18:05:08

We've just fixed for 5 years at 2.15% for remortgage and additional borrowing for an extension - we figured borrowing for the additional was worth it as it will never be cheaper and 5 years gives us a long period of stability and we can overpay if interest rates get crazy.

Homerschild Wed 18-Oct-17 18:47:29

We have just been for remortgage consultation. Lender explained exit fees are much higher for 10year deals so 10% in first year penalty and then 9% and so on. Choose a five year deal but mainly due to that's when child benefit will cease for eldest - thought whether child benefit will still be in force then if a whole other thread!

vilamoura2003 Wed 18-Oct-17 19:35:08

We have just gone for the 10 year fixed with First Direct for 2.49% - this is based on an LTV of lower than 60% 👍

I don’t think this deal will ever really come up again if rates start to rise. I like the certainty of what I will be paying 👍

BestOption Wed 18-Oct-17 20:48:33

Thank you, it's great getting so many different thoughts.

If First Direct were able to offer a 'Consent to Lease' I'd have gone with the 10 Years Fixed at 2.49%. Their Early Repayment fee is very low (£149, plus (3% in year 1, 2% in years 2-10) and over 10 years I don't think I'd do better than 2.49%.

All the others I have found are 5-6% for a good part, if not all, of the term. One was until 2019 then dropped a bit.

User5Trillion. Two years will go quickly then you'll be in a really good position. Just don't be too hard on yourselves. Life is very short, & unpredictably so sometimes.

Delilah. 2 years makes sense if your LTV will change 😊 Mine is lower now but the additional borrowing will take it to 60% LTV, so it's not going to make any difference to me. It's so hard to decide because 2 years is better now, but if the rates increase then overall 5 years would be better. 🤔

Autumn. That all makes sense in your situation 😊

JoJo. Yes, 1.69 for 5 years or 2.5 for 10 years is what I'm looking at. It seems like a big difference, but if Interest rates go back to 8% or higher, then it's going to look like a negligible difference.

I remember a time when I was getting 21% interest on some bank savings. Sadly I was very young and the amount I had in saving was negligible, but I am concerned that with the instability interest rates will hike and not fixing it for as long as I possibly can will be something I regret.

KanbanFan. Yes, that's why I'm looking at borrowing the extra. The rates are low (not as low as last year <kicks self>) & are unlikely to go any lower. I plan to over pay to cover the extra borrowing.

HomersChild. That's not quite right. First Direct over payment fees are £149, plus (3% in year 1, 2% in years 2-10), there are mostly 6% either for the entire term or not reducing for quite some time. There are a lot of variations. Annoyingly First Direct can't offer a 'Consent to Lease' so I can't take up their offer. It sounds like 5 years was ideal for you anyway 😊

Vilamoura. As I said above, I'd have gone for that too for the same reason, but sadly can't due to the lack of a 'Consent to Lease' not being available. Typical.

Zorra Fri 20-Oct-17 13:28:33

We’re on 2.3% for 5 years with nationwide - I rented my house out as I went overseas (think I couldn’t do it in the first six months) and it adds 1% to the interest rate which still works out fine.

Hohofortherobbers Fri 20-Oct-17 22:18:40

We're getting onto a fixed rate 5 year at 1.84% first direct. No fees. Will add approx £60/month to our current tracker repayments but we want the security. 2yr fixes were cheaper but I don't fancy our chances of finding a good deal in 2019 so we're fixing for longer and 1.84% is still pretty cheap

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