Remortgage because of interest rate rises

[Destiny]

Hi
I am coming out of a five year fixed rate mortgage with the Abbey next February. I am currently paying 5.39%. Obviously I know my mortgage payments are going to jump up by quite a bit! I have never missed a mortgage payment with them and have been a mortgage customer since 1995. Can anyone tell me, if I wanted to remortgage with another lender to get a better deal, is my IVA likely to have an adverse effect ie, with regards to rates offered etc? Will I be accepted by another lender because I am in an IVA? Would it be better to just stick with the Abbey? I read an article somewhere that a tracker would be the best option at the moment because rates might be going down again? So many questions I know but don't know where to turn!

[Andrew Graveson]

Hi Destiny,
I think you should speak to Abbey and an independent mortgage broker. If Abbey will offer you a competitive product then this may be more convenient and cost-effective for you. If a mortgage broker can find you a better deal then all the better for you. Your IVA will be noted by lenders in an application, but there are lots of lenders (not necessarily high street lenders) who will still be interested in lending to you especially if your mortgage payment and IVA payment records are strong.
I don't think any of the brokers on this site will charge you to talk it through so I'd suggest that you get in touch with one. If your current deal ends in February I would not wait too much longer to start work on this.
Questions like tracker versus fixed rates etc are best answered after a broker understands your circumstances and attitudes to risk. For that reason as well I think you should talk to a broker on the phone as none of us would be able to give you an answer as to what is best for you on a forum like this.

Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[bagpuss]

just to say...who ever you talk to . do ask if there are ANY upfront fee's....very important as i can only guess that as you are in a IVA you wont have spare cash for things like...solicitors...valuations...fees...etc

I would start with Abbey...just ask if they can offer you a better deal....if not..try a brokers...Leybridge are doing my remortage.

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Andrew Graveson]

It's a good point from Bagpuss. Some lenders will offer free valuations and/or legal work which can make a big difference. A good mortgage broker will factor this into their search for appropriate mortgage products for you. There's no need to pay any upfront fees to a mortgage broker.

Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Destiny]

Thanks for your advice, all greatly appreciated!!

[mikebdomain]

I would definitely talk to Abbey first and go through your options with them, you may have an extended tie in with your particular product that may mean you are penalised if you remortgage away from Abbey.

If Abbey can not help you, it is always worth talking to a mortgage broker who has expertise in dealing with people in current IVAs. They will, after carrying out a full fact and carrying out a credit search, search the whole of the market for you, and discuss product benefits and pitfalls in full with you.

As for fee’s, we do not charge any up front fees for people in a current IVA. And there are plenty of mortgage brokers that do the same – the most any broker specialising in this area should ask you for, is a small application fee to show commitment on your part.


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