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 21/05/2008
I am a first time buyer who wants to buy a flat in London. Some people are saying to wait as prices are expected to fall by 12%-18% over the next 2 years nationally. Can this price drop be expected in London or other "hot spots"? London prices seem to be in a bubble that is not typical of the rest of the country.
Categories: Current rates & the market, First-time buyer
Posted on 19/05/2008
What are the best rates available in 10 year fixed rates?
Categories: Current rates & the market
Posted on 29/04/2008
I want to buy a new home. I have a £159k mortgage on a house which is not selling at the moment and the rental figures for this house won't cover 125 % of the mortgage payments. I also have a holiday house in Scotland with no mortgage.
Can I use the Scottish home as equity for a new loan?
Eileen
Categories: Current rates & the market, Let-to-buy
Posted on 24/04/2008
I purchased the other half of my shared ownership property in 2003 valued at £173,000. I combined my mortgage halves with Northern Rock. The fixed term comes to an end in October 2008 after five years. I need another mortgage. You mention interest rates could go again as low as 4.5%? I need to get my mortgage in place for October and don't know who to go with. I would rather it is fixed and not a tracker. Any advice?
Categories: Current rates & the market, Remortgaging
Posted on 10/03/2008
According to different mortgage packages, will the repayment of the capital be at the same time scale (even though the actual monthly repayment amount and TAR will differ)? i.e. will the equity of a property appreciate at the same rate regardless of mortgage if they are the same length of term and assumed to be repayment based?
Categories: Current rates & the market
Posted on 05/03/2008
Is it wise to buy a house at the moment? Is the price going down or should I wait?
Categories: Current rates & the market
Posted on 19/02/2008
Hi Katie, I'm on a variable mortgage tied in until January 2010. I am only tied in by the 5% of the balance charged if I change the mortgage type or lender. The balance is around £82,500 which is about a £4,000 fee. Is it worth me looking around for a fixed rate mortgage or stay with what I have until 2010? Basically would the new rate be worth paying the extra £4,000 fee? Although I was informed that even though the small print suggests a charge even if I stay with the present lender. I am told this may well be wavered because I would still be with them. Could you share some light for me please?
Categories: Current rates & the market
Posted on 17/02/2008
How will the Northern Rock nationalisation affect current Northern Rock mortgage holders? Will it affect our repayments? Any information would be grateful please Kate.
Categories: Current rates & the market
Posted on 17/01/2008
Hi Katie, I am looking for a long term 'Buy to Let' strategy buying about 15 properties over the next 18 months/two years.
1. What products do you have available where I can release capital growth EACH and EVERY year without any penalties? [as long as the rent stacks up and the capital grows of course] e.g. Property value now = £100,000, in one years time say the value goes up 10% to £110,000. Can I release 2% - i.e. £2000 without any penalties/fees?
2. Will I know what the property is going to valued at after completion before exchange i.e. If the property is going to be valued at 15% above purchase price, will I know this before the exchange?
Kind regards, Marc
Categories: Buy-to-let, Current rates & the market
Posted on 17/01/2008
Is it worth moving in the current market?
Categories: Current rates & the market
Posted on 10/01/2008
Our monthly income is £2,000 yet our total outgoings per month are £2800. Much of this shortfall has been spread across credit cards that now total £15,000 with the 0% offers ending around June this year. We are currently only making the minimum payment each month(part of the £2,800 outgoings).
I also have two car loans at around 6.9% with £11,000 balance remaining over the next 4 years totaling £276 per month (also part of the £2,800 outgoings). As our outgoings are £800 adrift from our incoming I am considering adding this £26,000 of unsecured debt to our mortgage, and by lengthening the mortgage from 9 to 15 years would make my monthly new payments for the whole lot on a 5.63% mortgage (5yr fix) around £649 per month (£440 per month more than my current costs).
I fully appreciate your help on this, the Ask Bea is a valuable part to this website.
Categories: Consolidation of debts, Current rates & the market, Lower mortgage payments, Remortgaging
Posted on 09/01/2008
My current offset mortgage with First Direct is 5.94% tied to BoE rate. They are advertising a 2 year offset fix @ 4.99% with a £499 fee for existing customers. This seems pretty good. Do you agree?
Categories: Current rates & the market
Posted on 08/01/2008
My fixed rate mortgage stops at the end of March. I want to find the cheapest interest rate. Which is better a 2 or 5 year? Is the interest rate going up or down?
Categories: Current rates & the market, Fixed or Variable?, Remortgaging
Posted on 04/01/2008
I have a significant amount of personal debt, but a good income and have never bought before. Is there a way for me to combine my personal debt with a mortgage to get onto the property ladder? Is it an option you would recommend?
Categories: 100%+ borrowing, Current rates & the market, First-time buyer
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
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.