At London & Country, the UK’s largest no-fee mortgage broker, we help thousands of people every year find the right deal on their mortgage and life insurance. Our advice is free and our aim is to make the whole process of finding and applying for a mortgage as simple and as cost-effective as possible.
David Hollingworth answers your questions about residential mortgages.
Read the questions below and click answer to read his advice and leave your comments.
If you have any questions for our exert, please email ben.wilkie@metropolis.co.uk
Question: I have a joint offset mortgage with my lender and have recently become divorced. The mortgage of £30,000 is currently charged at a tracker rate of 1.25per cent. There is also a secured loan of £90,000 attached to the mortgage account and therefore charged at the same tracker rate of 1.25 per cent. The secured loan operates as a current account. In order to change the mortgage (and secured loan) to my sole name following divorce, my lender is insisting that I remortgage to one of its latest deals, the cheapest being a tracker rate of 3.19 per cent, almost three times higher. This would mean paying an extra £33,000 in interest payments over the term. Is this fair? Do I have any other options?
Question: My partner and I want to buy our first home together. We don’t foresee any problems getting the mortgage and we’ll share the repayments equally. However, he has a much larger deposit to put down £50,000 compared to my £10,000 and I want to know if there’s any way we can recognise that. He is pretty relaxed about the whole thing, but I think it’s only fair that his extra contribution is noted, especially if we end up going our separate ways. Do you have any suggestions?
Question: We have always preferred the stability of a fi xed rate mortgage, but our last deal came to an end about a year ago and we moved to the lender’s SVR because it was so much cheaper. While we’re happy to continue paying less, we do prefer to know what our payments are going forward. Is there any way of knowing when the right time to fix is?
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