Anyone renewed their mortgage lately?

[TheSameButDifferent]

Ours is up for renewal in August. Currently on 4.99% (eek) which was fixed for 3 years. I'd be grateful to hear of anyone who has fixed a lower rate than this and how long for.

Thanks

Thanks MNHQ was going to report (read it on another computer earlier where I wasn't logged in).

Bumping to ask if any of the day shift may have any info on mortgages as my original OP.

33kns, would you happen to know what percentage your renewal was?

It's difficult asking others what their mortgage rate is, because each of us has a different credit profiles and equity.

Why are you fixed on a fixed rate?

I got 2.9% fixed for two years.

It depends on your credit rating and deposit size

The rate you'll get will depend on how much deposit you have. We're just getting to the end of a fixed rate of 5.79 (fixed at the wrong time!) and are going for a 5 year fix at 3.99%. This seems v good for a 15% deposit. One word of warning, the lenders seem uber cautious now and ask all sorts of questions you might not expect - eg what do you spend on food, petrol, clothes, etc. They have never asked us things like that before!

Sorry, we have a mortgage already, does that mean we have to go through the whole rigmorole of what we earn, spend etc just to renew the rate? I don't know why we went for a fixed rate, well it was 2007 the first time and when we renewed in 2010 the rates weren't much better and chose to renew as fixed in case the variable went through the roof. Our credit rating was superb in August when we had a chat with Halifax man to get an extension for some building works.

If you stay with the same lender you will probably be able to review your rate with them without going through all the income and expenditure costs again, but it will may not be the best rate on the market.

If you can, I would go to see a good IFA/mortgage broker - you will possibly have to pay a fee but if they know their stuff, it could save you alot more in the long run (depending on the size of your mortgage) We took out a base rate tracker mortgage 5 years ago - very good advice.

I think rates will stay low for at least another 3 years so shop around.

Thanks Ruby, how do base rate trackers work, do they constantly change? Sorry but a bit thick when it comes to this sort of thing!

We had to go through all of our finances again with the same lender - they even requested work references and a new valuation despite only providing then two years ago. I was really surprised.

I always talk to an independent mortgage broker when I want to remortgage. My experience is that they can get me better deals than I can just shopping around as a customer. They also point out any restrictions on the lending such as penalties for early repayment or those asking for high administration costs. If you have plenty of equity in your home, a good credit rating and your income is reasonable the application process should be quite quick

Rates are creeping up now an lending has tightened my friend has sold due to divorce and what she was offered in January to buy a flat and what they havevoffered now hasdropped by 70 k. No change in her circumstances she has a good salary etc. They look into everything too bank statements and monthly spending is being really scrutinised. As are credit cards and other loans

Base rate trackers work by tracking the bank of england base rate which is currently 0.5% plus you pay a % on top of the base rate - typically at the moment something between 2.5% to 3.00% above base rate. So you would be paying about 3% for your mortgage. Base Rate hasn't changed for 3 years now so people on a good tracker have had a good deal (so far)

Its good while rates are low (like now) but you have to be able to factor in any future rate rise there might be. So it might not suit you if base rate went up to say 5% again and you were then paying 8%. But I don't think we will see rates up that high for some time.

Lenders are much stricter now then they were before, we couldn't move house now as we would never get the same mortgage we did 5 years ago. Lenders very much go on income and expenditure, credit cards, loans, petrol spending etc whereas before they went on income as a guide.

John Charcoal are IFA's, I think you can contact them on-line.

Base rate trackers track either the Bank of england base rate or the banks own. Either way things are changing so read the small print. Some building societies have even managed to find a clause to detach from the bank of england rate!