mortgage/re-mortgage, whats the difference?
- Thread starter dac69er
- Start date
dac69er
Super Moderator
thats what i was thinking, but im at the end of my 2 year fixed deal and will be on the normal variable rate soon. want a new fixed rate deal. just want to make sure as alot of websites list 'mortgage' '1st time mortgage' and 'remortgage' as separate sections. its obviously not a 1st time mortgage but just not sure out of the other two what it is???
Dane_Bristol
Member +
You will be remortgaging mate
A mortgage would be taken out at first instance at first point of call when you where a first time buyer.
You now have a mortgage which essentially is a ''Loan against your property''.
When your deal ends you shop around to see if there is a better deal out there. Where do you live mate? I can refer you onto a Mortgage Broker if you are in the catchment area and they source from the ''whole of market'' not only this they get exclusives aswell so there might be a deal out there which is better than your current deal.
You dont really wont to get stuck on the lenders standard variable rate as is most often the case they are much much higher than a product that you might secure if you shop around.
A mortgage would be taken out at first instance at first point of call when you where a first time buyer.
You now have a mortgage which essentially is a ''Loan against your property''.
When your deal ends you shop around to see if there is a better deal out there. Where do you live mate? I can refer you onto a Mortgage Broker if you are in the catchment area and they source from the ''whole of market'' not only this they get exclusives aswell so there might be a deal out there which is better than your current deal.
You dont really wont to get stuck on the lenders standard variable rate as is most often the case they are much much higher than a product that you might secure if you shop around.
dac69er
Super Moderator
cheers mate. just what i wanted to hear. i have seen a mortgage advisor but wanted to do a little research myself.
she suggested nationwide who i am already with but it seems as though i can get slightly cheaper elsewhere. not sure if im doing things right though to be honest???
im in suffolk, east of england mate
she suggested nationwide who i am already with but it seems as though i can get slightly cheaper elsewhere. not sure if im doing things right though to be honest???
im in suffolk, east of england mate
Dane_Bristol
Member +
cheers mate. just what i wanted to hear. i have seen a mortgage advisor but wanted to do a little research myself.
she suggested nationwide who i am already with but it seems as though i can get slightly cheaper elsewhere. not sure if im doing things right though to be honest???
im in suffolk, east of england mate
Well to be honest do you know if she has sourced from whole of market or not ? There is a big difference to the amount of product that will show up on a ''Whole of market'' search as apposed to a Limited Panel which is what she might be looking at.
You see certain firms can only source from what they are authorized to do in some instances some firms can only source from a limited number of lenders in this case it can really leave you with very few options.
If you would like i can refer your details and contact number to a broker its free of charge and they will be able to tell you if they can find a better deal.
Its free and you are not obligated to take them or take out the product unless of course it beats your existing deal that has already been sourced.
How long till you current deal ends/expires ?
dac69er
Super Moderator
i have until the end of november so plenty of time. i want to go with a reasonable lender though considering the credit situation. dont want to go with a back street lender because they are cheap and they suddenly go under.
i thing she is using a select panel of lenders. nationwide to seem to be one of the best larger lenders but there are other well known ones with slightly better deals.
im already with nationwide and im going to go see them tomorrow to see if i can get a better deal by going in and talking to them directly.
i thing she is using a select panel of lenders. nationwide to seem to be one of the best larger lenders but there are other well known ones with slightly better deals.
im already with nationwide and im going to go see them tomorrow to see if i can get a better deal by going in and talking to them directly.
Dane_Bristol
Member +
Yeah i would be careful then mate i can refer your details on its Andrews Estate Agents mate not your average back street estate agency too one of the biggest in the country. There is time but it wouldn't hurt to have another broker look and see what is out there. Like i say we have exclusive deals with the likes of Nationwide, Woolwich, Abbey, C&G, Chelsea etc etc. These are deals made exclusive to us as the amount of business we write we are offered these deals that perhaps other small time brokers do not have access too.
Up too you buddy but i know it will be good to try a different selection.
Dane_Bristol
Member +
Yeah Bank of England base rate is at 5% currently lenders are not budging or offering any decent rates at the moment however the time will come when they will have to start introducing lower rates the market will pick up just a matter of time.
white-ep82
Member +
as above, expect around 7% fixed for two years with an arangement fee of anything up 2 £1000 at the moment. I have a property that I rent out to tennants in East Sussex, Alliance and Leicester were best for me by a stretch! Also the mortgage broker at the Hastings Andrews branch is very good! he arranged my mortgage for me, and other mortgage brokers couldnt get close to the products he could offer me.
SupaStu
Member +
..also mention to your existing lender that you are thinking of leaving them, as they should be able to offer some type of "loyalty" rates/deals that are generally not published online etc - as they are only for existing customers.
Sometimes you can save a bit doing that.
Also beware that a lot of companies are now charging large fees for remortgaging, even with existing lenders for certain mortgage products. Its best calculating what you are supposed to be saving against any fees they may charge, over any period of discount/fixed rate etc.
Hope that helps.
Sometimes you can save a bit doing that.
Also beware that a lot of companies are now charging large fees for remortgaging, even with existing lenders for certain mortgage products. Its best calculating what you are supposed to be saving against any fees they may charge, over any period of discount/fixed rate etc.
Hope that helps.
dan
Member +
Ive got to remortgage next june, really cba with the agro of it all.
When do you recon best to start looking into things? We have a family financial advisor who we used to get our original mortgage 2 years ago, will probably end up going with her again, but just want to know whens best to start the search.
When do you recon best to start looking into things? We have a family financial advisor who we used to get our original mortgage 2 years ago, will probably end up going with her again, but just want to know whens best to start the search.
i used to work as a mortgage adviser for a highstreet bank (not naming any names), but my advice would be deffo shop around - sure there is a list of all mortgage deals out there on net.
1 thing i would mention is not to be interest rate orientated - look at what fees you have to pay - spoke to so many customers that wanted an interest rate of say 5% but cost them £1200 to get it, when in fact they would save more money getting a deal on 5.7% and paying £250.
Just work out all the figures and of course fees to leave them during the period of the deal, and period after - new way of making money is have a closure fee of £250 if you pay off your mortgage before the set end date (say in 15 years!).
IFA (independnt finaical advisers) are good, but with everything they get paid by the lender......so if they are recomending a particular lender over another think to yourself what they are getting in return for your business - usually several hundred pounds!!
And ALWAYS shop for insurances - just like car insurances, aslong as its insured it fdoesnt matter what company you with - you can save alot of money shopping around - pain in the ass i know, but money is money!
1 thing i would mention is not to be interest rate orientated - look at what fees you have to pay - spoke to so many customers that wanted an interest rate of say 5% but cost them £1200 to get it, when in fact they would save more money getting a deal on 5.7% and paying £250.
Just work out all the figures and of course fees to leave them during the period of the deal, and period after - new way of making money is have a closure fee of £250 if you pay off your mortgage before the set end date (say in 15 years!).
IFA (independnt finaical advisers) are good, but with everything they get paid by the lender......so if they are recomending a particular lender over another think to yourself what they are getting in return for your business - usually several hundred pounds!!
And ALWAYS shop for insurances - just like car insurances, aslong as its insured it fdoesnt matter what company you with - you can save alot of money shopping around - pain in the ass i know, but money is money!
dac69er
Super Moderator
mortgage wise it looks like my current lender nationwide is best. tried 2 brokers and also a few comparison sites and that seems the best deal.
there is also a lyoalty deal on at the moment. 5.98% fixed for 3 years with no arrangement fee. cant say fairer than that.
as for the insurance, ive done a few searches and it seems like i can half it.
problem is a cant secure a deal until the beginning of next month as i can only do it 2 onths before the end of the current deal otherwise i need to pay a penalty and i dont want to do that.
mortagages are a black art, especially at the moment!!!
there is also a lyoalty deal on at the moment. 5.98% fixed for 3 years with no arrangement fee. cant say fairer than that.
as for the insurance, ive done a few searches and it seems like i can half it.
problem is a cant secure a deal until the beginning of next month as i can only do it 2 onths before the end of the current deal otherwise i need to pay a penalty and i dont want to do that.
mortagages are a black art, especially at the moment!!!
davehart
Member +
The best people to get your morgage from are an independant broker as they will be able to scan over the market to find the best deal for your circumstances.
The guys who do mine are excellent and scan hundreds are different lenders to find the cheapest and best price morgage.
6% is cheap for three years on a fixed. Fixed is the best one to get in my opinion as you dont get caught out by intrest changes.
Re-morgaging is just as its been said, changing or upgrading your current deal.
A good morgage advisor firm should be abe to get you a good deal and arrange for your insurance at the same time.
The guys who do mine are excellent and scan hundreds are different lenders to find the cheapest and best price morgage.
6% is cheap for three years on a fixed. Fixed is the best one to get in my opinion as you dont get caught out by intrest changes.
Re-morgaging is just as its been said, changing or upgrading your current deal.
A good morgage advisor firm should be abe to get you a good deal and arrange for your insurance at the same time.
fantasiagreen
Fresh Recruit
Agreed. My dad always advises me to ask the IFA you're speaking to how much commission they are going to earn if they sell you the mortgage!
dac69er
Super Moderator
im a tight arse so i use the mortgage advisor to tell me the cheapest deal then go direct unless they have an exclusive deal. in that case ill go with that if it works out better in the long run.
in the economic climate we have at the moment a fixed rate is the only way i think. if it shoots to 20% interest ill still be paying my 6 or so %