Renewing mortgage advise please

P

Pang

Guest
My mortgage is coming up for renewal and have been thinking that as banks are being tighter on giving mortgages out do they ever refuse to continue/renue a mortgage? My circumstances are still the same as when I bought the house but am wondering if now they are being stricter whether they might not renew it or does it not really matter what my salary is if I already have the mortgage?
 
Pang said:
My mortgage is coming up for renewal
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What do you mean "up for renewal"? Do you mean that you are coming to the end of a fixed rate period and need to choose another fixed, variable or tracker rate? Or do you mean that you have approval in principle which is due for review given the time that has elapsed since you originally got it?
 
yes i am coming to the end of a 2 year fixed mortgage
thanks
 
Once you keep up the repayments, you'll be fine.
You may have difficulty if you wish to switch your mortgage though as the lender will assess whether your current salary is strong enough to make the current repayments.
 
Pang said:
yes i am coming to the end of a 2 year fixed mortgage
thanks
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Your lender will probably write to you outlining some of the rates on offer at the end of the fixed rate period. They may not list them all especially the best value tracker rates. That was my sister's recent experience with EBS (the mutual that gives such a great deal to its members and all that... ) and only that she asked me she would not have known about their ECB + 1.2% (< €250K, < 60% LTV) tracker which is the best rate on offer from them for her specific circumstances. (Even if there were better trackers available elsewhere the amount and term outstanding on her mortgage would not make switching worthwhile).
 
Sorry if I'm hijacking your thread but I'm in a similar situation.

My 2 year tracker deal is up shortly and my bank has sent me the option of these deals...

Tracker Variable rate (ECB +1.68%) currently 5.93%
Standard Variable rate = 5.94%
2 year fixed rate = 6.35%
5 year fixed rate = 5.99%
7 year fixed rate = 6.10%
10 year fixed rate = 6.10%

Are any of deals any good? My circumstances have changed since I first took out the mortgage in that I am now unemployed and in receipt of Jobseekers Allowance.... If i was to switch to another lender to secure a better deal would they take me on since I am on benefits?

Thanks for any help guys
 
weejasy77 said:
Sorry if I'm hijacking your thread but I'm in a similar situation.

My 2 year tracker deal is up shortly and my bank has sent me the option of these deals...
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Make sure that the list is exhaustive. It may not be.
Tracker Variable rate (ECB +1.68%) currently 5.93%
Standard Variable rate = 5.94%
2 year fixed rate = 6.35%
5 year fixed rate = 5.99%
7 year fixed rate = 6.10%
10 year fixed rate = 6.10%

Are any of deals any good?
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You might want to also post some details of your mortgage - e.g. amount and term outstanding, approximate value of house etc. since stuff like loan amount outstanding and LTV ratio may be pertinent to saying what rate is or is not competitive.
My circumstances have changed since I first took out the mortgage in that I am now unemployed and in receipt of Jobseekers Allowance.... If i was to switch to another lender to secure a better deal would they take me on since I am on benefits?
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I would say almost certainly not.
 
Thanks club man... property value is around 280k, mortgage outstanding 123k over 17 years

I'll check on the TSB website to see if there are any better offers.

What is everyones opinion on a fixed rate mortgage... is it the way to go what with the current credit crunch and that?
 
impossible to know but i would think the ECB will cut rates in the next few months so get a tracker if u still can but if not then a variable one. fix then when rates are lower.
 
I hope you dont mind if I ask a question on mortgage rates. My fixed rate mortgage is due to be renewed I got a letter outlining the new mortgages offered to me which are:
Tracker
 
I got a letter from my band outlining the new mortgage rates available to me as I am coming out of a fixed rate mortgage:
Tracker Rate 3.35
Variable Rate 4.45
2 Year Fixed 5.35
It states that the interest rate applied to the tracker loan will never be more than 2.35% over the ECB rate
I am verying towards the tracker rate, is this the best way to go. I would really appreciate any advice.
 
please get out your original paperwork ( you can get a copy from your solicitor if you have lost same and check what it says on same about rolling onto a tracker...for example..ecb plus What %.....I would go tracker.

Check though, as yours seems high for some one coming off a fixed rate that was put in place two years ago
 
that tracker looks very high. i'm coming off a 2yr fixed in sept and my tracker that was inbuilt into the original document is ECB + 1.1%. as previous poster said check your original mortgage agreement
 
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