Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 30/12/2007
I have recently taken out a mortgage with a fixed rate for 2 years on a repayment deal. I have an online account and can see the details of my mortgage payments. For example, paid in £740, paid out £451, which leaves £289 to be paid to my capital balance. Will the payments going out be less as the months and years go on and will my balance reduce every month? I have an option to make overpayment up to 10%. What would be the best way to make them? I'm looking at around £1500 a year. Thanks Paul.
Categories: Overpayments, Payment Holdays, underpayments, Borrowback
Posted on 30/12/2007
My discount period ends in March 2008. When should I approach my existing lender to see if they can offer me a new deal or apply for a remortgage. Thanks. Simon
Categories: Remortgaging
Posted on 30/12/2007
My sister and I are arranging a remortgage on a property we own together for £129,000. As I would like to be able to buy a property on my own in the summer, we are going to put the house into either solely my name (I would then have to borrow based on her earnings) or in hers with me acting as a guarantor. I earn £31,200, she earns £18,000. Which arrangement would allow me to borrow the most money in the summer for my own property? I will have £10,000 for a deposit.
Categories: Remortgaging
Posted on 28/12/2007
My parents are selling their house to buy a retirement flat from a friend. They must complete the deal before the end of March 2008 or they will lose it. Their house is on the market at £125,000 and they are buying at £99,000 with £15,000 to repay on mortgage. However, the market is slow and I am worried they may lose out. My husband and I have a house worth over £300,000 with no mortgage. He is 61 and I am 62. Would it be possible for me to buy it on their behalf as a buy-to-let and rent it to them? My pension is small but I could manage repayments of £400 per month in the event of them not being around to pay me and a deposit of £40,000.
Categories: Buy-to-let, Legal matters, Mortgages in retirement
Posted on 26/12/2007
My current two year fixed rate with Nationwide is coming to an end on the 29th February. I am considering opting to replace it with Nationwide's 5 year fixed rate for existing customers at 5.63% but, in view of the current interest rate situation, am wondering whether it would be better to wait, at least for a few weeks, to see whether any potential further base rate cut is forthcoming and whether this would lead the Nationwide to offer an even lower fixed rate (over 2, 3 or 5 years). What do you think?
Categories: Current rates & the market, Lower mortgage payments, Remortgaging
Posted on 20/12/2007
I'm looking to borrow more money on our house. Our house is valued at £175,000, our current mortgage £50,000 plus £28,000 on secured loan. I want to consolidate my debt. I have credit cards and want to clear them. What options do we have?
Categories: Consolidation of debts, Lower mortgage payments, Overpayments, Payment Holdays, underpayments, Borrowback, Unsecured loans
Posted on 20/12/2007
Hi Katie, in your reply to Mr Churms you say 'Of the few lenders that could offer you a mortgage, only a few could do so for more than a few years' Can you please tell me who these few are? As I would like to re-mortgage, and not use equity release. I am 68 but I work and have an annual income in excess of £50,000. My house is worth about £320,000 and I would like to re-mortgage about £80,000.
Categories: Equity release, Mortgages in retirement
Posted on 19/12/2007
I am coming to the end of my fixed rate (March 2008) but my home is under permission to let as I am out of the country for a year working in Bermuda. I would like to re-mortgage. Do I need to switch to buy to let if it is my only residence and I will be moving back into it at the end of my fixed term contract? Will any banks consider a residential mortgage?
Categories: Ex-pats mortgaging in the UK
Posted on 19/12/2007
Hi, Is there anyway you can work out for me what the interest would be on £103,000 mortgage? Sally
Categories: First-time buyer, The application process explained
Posted on 19/12/2007
I am hoping to place an offer on a property with a flying freehold on 2 of the bedrooms to the property. I understand not all mortgage lenders will accept this. Which ones do you suggest we approach first?
Categories: Valuations, Freehold, leases & unusual property
Posted on 17/12/2007
Hi Katie, I have a mortgage of £50,000 I need to borrow £25,000 more. How much would a £75,000 mortgage cost me?
Categories: The application process explained
Posted on 16/12/2007
Hi Katie, I heard there are 8500 mortgage products out there. How different can they really be? - grateful for your insight. Thanks, Clive.
Categories: First-time buyer, The application process explained
Posted on 14/12/2007
We have a London flat, (no mortgage outstanding) currently on the market @ £1.5million. We have made an offer of £455,000 on a leasehold (113 years) flat in Bath. I am 78 my wife 79, our joint pension amounts to £50,000 pa. Would we be able to get a "let to buy" mortgage on our flat in the event of delays in the sale, in order not to lose the Bath flat?
Categories: Let-to-buy, Mortgages in retirement
Posted on 13/12/2007
Hi Katie. With the reduction in the base rate of interest and the seemingly daily speculation about the state of the housing market, is it wise or foolish to buy now as a first time buyer? Are the risks of acquiring a lot of negative equity high, and are people now taking less than their asking price for properties (in the SE of England). Many thanks in advance.
Categories: First-time buyer
Posted on 10/12/2007
I bought my house in 1987 for £20,500. When my wife moved in ten years later the value went up to £55,000, is this £35,000 mine or is it to be split between us with the other equity occurred over the next 10/11 years? She has only been on mortgage for the past 3 years.
Categories: Separation or Divorce
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.