| Clueless remortgaging query [message #375996] |
Fr, 31 März 2006 04:16 |
|
When the tie-in period for my Abbey repayment mortgage ran out after 5
years, they sent me an offer of a better value mortgage and I thought 'How
lovely - clearly they aren't trying to rip me off' - and then I never did
anything about it, so like a mug I have been paying some sort of standard
rate for years.
My house has tripled in value over the last ten years, judging by a web site
listing actual sales prices of comparable neighbouring properties.
I want to remortgage, not just to get a better interest rate, but also to
extract some of the equity to repay high interest debt.
When I was put through to the Abbey retention team I expected I'd be talking
about a new mortgage altogether but their line was 'Oh no, there'd just be
additional borrowing on the existing mortgage'. They did say that a better
interest rate could be negotiated on the additional borrowing but it was a
phone conversation, difficult to ask detailed questions and I got lost in
all the financial gobbledegook.
My question is, is it normal practice to view remortgaging with equity
withdrawal as 'additional borrowing on an existing policy' or am I being
ripped off? Could it ever be in a borrower's interest to do things that
way, e.g. not starting another tie-in period which would presumably be the
case if I went to a completely new lender like, say, Nationwide?
S
|
|
|
| Re: Clueless remortgaging query [message #376002 ] |
Fr, 31 März 2006 10:03 |
|
In message <e0i3ef$6908$1 [at] news3.infoave.net>, SoHo <SoHo [at] WinXP.net>
writes
>is it normal practice to view remortgaging with equity
>withdrawal as 'additional borrowing
If you stay with the same lender, then yes.
> on an existing policy'
Im not sure what you mean by 'existing policy'. Is it an endowment
mortgage?
>or am I being
>ripped off?
Depends on what the interest rate is that they are offering you.
> Could it ever be in a borrower's interest to do things that
>way,
Yes. It saves hassle.
>e.g. not starting another tie-in period
There are loads and loads of re-mortgage offers from other lenders that
do not have a tie in period. I.e. Coventry offer a no penalty remortgage
at less than 5%.
>which would presumably be the
>case if I went to a completely new lender like, say, Nationwide?
--
John Boyle
|
|
|
| Re: Clueless remortgaging query [message #376004 ] |
Fr, 31 März 2006 10:18 |
|
SoHo wrote:
> When the tie-in period for my Abbey repayment mortgage ran out after 5
> years, they sent me an offer of a better value mortgage and I thought 'How
> lovely - clearly they aren't trying to rip me off' - and then I never did
> anything about it, so like a mug I have been paying some sort of standard
> rate for years.
>
> My house has tripled in value over the last ten years, judging by a web site
> listing actual sales prices of comparable neighbouring properties.
Sounds reasonable
> I want to remortgage, not just to get a better interest rate, but also to
> extract some of the equity to repay high interest debt.
Good idea
> When I was put through to the Abbey retention team I expected I'd be talking
> about a new mortgage altogether but their line was 'Oh no, there'd just be
> additional borrowing on the existing mortgage'. They did say that a better
> interest rate could be negotiated on the additional borrowing but it was a
> phone conversation, difficult to ask detailed questions and I got lost in
> all the financial gobbledegook.
>
> My question is, is it normal practice to view remortgaging with equity
> withdrawal as 'additional borrowing on an existing policy' or am I being
> ripped off? Could it ever be in a borrower's interest to do things that
> way, e.g. not starting another tie-in period which would presumably be the
> case if I went to a completely new lender like, say, Nationwide?
I would suggest that you see what other lenders can offer. You will then
have a better idea of how competitive Abbey's offer is.
You can compare mortgages on the site below:
http://www.moneysupermarket.com/mortgages/mortgagesstep1.asp
http://www.moneyfacts.co.uk/
There will be fees involved in moving the mortgage, but the new lender
may pay some (or all) of these for you. Even if they don't the savings
could make it worth while, obviously, it depends on how much you want to
borrow.
--
------------------------------------------------------------ -----------
To reply to me directly:
Replace privacy.net with: totalise DOT co DOT uk and replace me with
gareth.harris
|
|
|
