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Letsdance

Do I Remortgage

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I work with Letsdance and he has kindly let me post.

Current rate 1 year left at 5.5% LTV 100% on house valued NOW at 95k.

I want to release 5 to 6k by MEW.

Do I MEW now and tie into 5 years at 5.83% given the massive problems we are facing and I might not be able to MEW next year

OR

Do I wait and MEW next year and hope I still have equity in my house and the interest rates have dropped.

I am in a dilemma

Thanks

Stu. :unsure:

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don't MEW at all, you DO still have to pay it back remember. You'll be paying back a new higher payment mortgage payment for a house that's falling in price. You would need to have gained 20% or more in value to even think of MEWing 5-6k and still hope your house price doesn't fall loads....imo

MEWing is the last resort if I was you

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Even if I don't MEW my current mortgage deal runs out early next year.

Do I get a deal now on a higher rate while I can or do I stay on the lower rate for another year and wait until I have to get a new deal and only hope and pray I can!!

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I won't ask why you need to MEW :ph34r:

Suffice to say cut your spending right back, sell the car, buy a bike, cut up credit cards and work overtime or second job if you can. Save save save.

Cheap money is over for some years, so try and get a deal today NOW while you can. My GF got a loan at Sainsbury's (20k) a few weeks ago at under 8% apr. I s'pose rates have leapt up since then, worth a try?

Good luck!

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I wouldn't MEW at all.

What is the Early Repayment charge for your mortgage if you leave early? You don't seem to have factored this cost in, and it may be significant.

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I won't ask why you need to MEW :ph34r:

I will.

Stu, why do you need to borrow £5k? Let's be honest, that's the question that matter here. Whether you get that £5k from an increase in your mortgage, borrow it as a straight personal loan from the bank, or sell your body on eBay is immaterial. All that matters is do you *need* it (e.g. replacement car required, can't work otherwise), or do you *quite fancy* it (e.g. the kitchen looks tired, I want a new one) - in the current climate, needs must be still be met, but quite-fancy-wants should be left well and truely alone.

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I work with Letsdance and he has kindly let me post.

Current rate 1 year left at 5.5% LTV 100% on house valued NOW at 95k.

I want to release 5 to 6k by MEW.

Do I MEW now and tie into 5 years at 5.83% given the massive problems we are facing and I might not be able to MEW next year

OR

Do I wait and MEW next year and hope I still have equity in my house and the interest rates have dropped.

I am in a dilemma

Thanks

Stu. :unsure:

I certainly wouldn't MEW now. Rather get a better mortgage rate and pay less each month.

Interest rates may fall by 1 or possibly 2 x 0.25% before the end of the summer. Some mortgage lenders are pricing this e.g. first direct are currently doing a 2 yr fixed rate at 4.75%. Don't be in a rush to increase your monthly payments by going from 5.5% to 5.83%.

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e.g. first direct are currently doing a 2 yr fixed rate at 4.75%.

are they? I thought their best rate was 5.49%. Didn't think there was anything left that low. With really high arrangment fees, and the Early Repayment Charge, I think the OP should wait til next year, and overpay like crazy til then.

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I work with Letsdance and he has kindly let me post.

Current rate 1 year left at 5.5% LTV 100% on house valued NOW at 95k.

I want to release 5 to 6k by MEW.

Do I MEW now and tie into 5 years at 5.83% given the massive problems we are facing and I might not be able to MEW next year

OR

Do I wait and MEW next year and hope I still have equity in my house and the interest rates have dropped.

I am in a dilemma

Thanks

Stu. :unsure:

The more equity you have the easier it will be to re mortgage in a years time, if you have no equity and lending has tightened you will be tied into your current standard rate on your mortgage (as other lenders wont want your business), if things have continued to be bad and banks need the money it will have probably risen to 8-12%. If house prices fall and the value of your home is less than your mortgage your current mortgage provider can demand you pay them in a lump sum to make up for the shortfall. Can you afford 8-12% Interest rates? can you afford to pay a 10->20k shortfall? I agree with other posters save save save save you still have one year left before you will be screwed over by tighter lending. It would be useful to have some cash so you can inject more equity into your property when you need to re-mortgage. Be prepared but remember everyone has differing options and things can get worse or better....

Edited by moosetea

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  • 298 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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