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Current five year fixed ends 29th June. Have I left it too late or is there still time to get it done before the new offensive monthly payments start. Current lenders SVR is 7.5% and current five year fixed rate was 6.48% this was taken out when our credit history or rather mine was less than perfect and I’m now earning £10,000 a year more and wife £22,000 a year more.
Should we apply ourselves through our bank or use a mortgage broker?
The ones we used last time were Meridian Mortgages.
Any good mortgages recommended in the Lancashire area?
Sharon Sutton at Sphere
I always call L&C mortgages to give them a shot at finding a better deal than my bank - they never do, but they've always been honest rather than trying to sell what they've got so for that reason I trust them
no idea what they're like for sub prime tho.
Current lenders SVR is 7.5% and current five year fixed rate was 6.48%
If you can afford to I'd see what the state of the market is in 6/12 months. Or you could end up fixing at the top of the market as it is.
Or see if there are any good tracker deals out there?
I'd always use a broker.
There is a comprehensive guide to remortgaging on the Money Saving Expert website.
That, I suggest, should be your start point - before talking with broker or current provider.
With (gross) earnings having increased by £32k you should explore overpayment options.
Good luck!
You have plenty of time.
It sounds like a broker would still be a good option to avoid failed applications and all the stress and hassle that goes with that.
If you can afford to I’d see what the state of the market is in 6/12 months.
Always a gamble but my guess is that rates won’t fall that fast unless there is some kind of shock to the market.
My 5 year fix ends in the next few months, I will probably end up with a tracker or a short fix.
Fix deal rates seem to have already peaked at the end of last year when lenders were expecting a huge base rate around now. They were already pricing towards the worst case scenario back then. Fortunately base rate isn't predicted to get anywhere near what we thought was coming and fixed deals are already dropping compared to what they were 6 months ago.
Whilst base rate may still continue to creep up ever so slightly I think fixed rates will continue to fall, albeit slowly. Our fixed rate ends at the end of this year.
As already said, consider overpayments if you can now afford it. Use an online overpayment calculator to see just how big an impact overpayments have - it's significant.
We only got a Sub prime because at the time i had a default on my credit score on experian which at the time was 170 paid that off and Experian score is as high as it can go. Never missed any payments, only have one credit card with currently £350 balance on which ill pay off next week.
I'd only consider overpayments if you already have some form of warchest savings in case of unexpected things.
Fixed rates are dropping so that means the banks are expecting rates to stabilize / possibly decrease. If I was remortgaging now I would probably look at a 1 or 2 yr tracker. Last I looked a few months back 5yr fixes were cheaper than 2 yrIANAE
The op wasn’t really asking what deal to go for but whether to use a broker or not.
Lenders use their own scoring criteria, rather just looking at a ‘credit score’ number. There will be some that have zero appetite for previous defaults. But you won’t know that until you apply. A broker will know which lenders are more tolerant of past record.