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  • FIRST POST
    • houmie
    • By houmie 1st Oct 17, 10:24 PM
    • 211Posts
    • 12Thanks
    houmie
    Yorkshire Building Society - Remortgage Questions
    • #1
    • 1st Oct 17, 10:24 PM
    Yorkshire Building Society - Remortgage Questions 1st Oct 17 at 10:24 PM
    Hi,

    Last year was the first time I bought a place, so I'm a beginner. When is it a good time to remortgage? I have only one year left. Do you usually start six months before the end? Or is now a good time?

    I'm right now with Santander on a 1.24% tracker mortgage for another year. As the interest rates may go up by 0.25% in November, maybe it's a good time to start a fixed mortgage.

    I have found Yorkshire Building Society to provide a 0.99% mortgage, which is very decent.

    How does YBS calculate the value of my property? I couldn't find any calculator on their website to see in which LTV I fall and. According to zoopla my flat has only risen by 3K since last year. Is this something I could call YBS and ask for?

    But according to this comparison site despite the hefty £1,495 fees to remortgage, it would come down cheaper over two years term, even without rates going up.

    Are there any other fees involved with YBS beside the £1,495? Do I need a new solicitor for this or can this just be done directly?

    Many thanks and sorry for so many questions,
    H
Page 1
    • getmore4less
    • By getmore4less 2nd Oct 17, 6:38 AM
    • 29,995 Posts
    • 17,927 Thanks
    getmore4less
    • #2
    • 2nd Oct 17, 6:38 AM
    • #2
    • 2nd Oct 17, 6:38 AM
    How big is your mortgage?
    current term and payment?
    Any penalties on leaving Santander?
    • houmie
    • By houmie 2nd Oct 17, 10:43 AM
    • 211 Posts
    • 12 Thanks
    houmie
    • #3
    • 2nd Oct 17, 10:43 AM
    • #3
    • 2nd Oct 17, 10:43 AM
    How big is your mortgage?
    current term and payment?
    Any penalties on leaving Santander?
    Originally posted by getmore4less
    Thanks for coming back to me.

    The mortgage is £408,339.50
    Term: 27 years left
    Interest rate: 1.24% Tracker
    Payment: £1,483.68
    No Exit fee (but a final administration fee regardless of leaving or staying: £235)
    No early repayment charge
    No limit on early repayment

    I could pay £8,339.50 as a lump sum to bring the LTV down to 60%.
    But I don't think that makes any difference. According to Martin's calculators, the best deal for me remains with YBS with 0.99% fixed, which happens to have an LTV of 75%.

    What is your advice?
    Thanks,
    • houmie
    • By houmie 3rd Oct 17, 5:54 PM
    • 211 Posts
    • 12 Thanks
    houmie
    • #4
    • 3rd Oct 17, 5:54 PM
    • #4
    • 3rd Oct 17, 5:54 PM
    Have I provided all information you needed?

    Many Thanks,
    H
    • Thrugelmir
    • By Thrugelmir 3rd Oct 17, 6:06 PM
    • 55,520 Posts
    • 48,879 Thanks
    Thrugelmir
    • #5
    • 3rd Oct 17, 6:06 PM
    • #5
    • 3rd Oct 17, 6:06 PM
    The mortgage is £408,339.50
    Originally posted by houmie
    If you have no plans to move. I'd give every cosideration to locking into the best longest term rate you can find in the market. As with a balance owing of that size. You are exposed to the winds of change for some years to come.

    Switching to a new lender will involve a solicitor. Plus valuation and exit fee. Easy to part with a £1k . Remortgaging isn't cost free.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • houmie
    • By houmie 3rd Oct 17, 6:23 PM
    • 211 Posts
    • 12 Thanks
    houmie
    • #6
    • 3rd Oct 17, 6:23 PM
    • #6
    • 3rd Oct 17, 6:23 PM
    If you have no plans to move. I'd give every cosideration to locking into the best longest term rate you can find in the market. As with a balance owing of that size. You are exposed to the winds of change for some years to come.

    Switching to a new lender will involve a solicitor. Plus valuation and exit fee. Easy to part with a £1k . Remortgaging isn't cost free.
    Originally posted by Thrugelmir
    Hi, thank you for your help.

    I'm not planning to move for the time being.

    Yes, I expected the valuation fee to be included in the £1499 fees from YBS. But I didn't know I had to hire a new solicitor again.

    If I switch from my 1.24% tracker to 2 years fixed 0.99%, I can almost pay the same amount of monthly mortgage but reduce the term by 2 years. This considers the £1499 fees. But not the solicitor fee.

    Do you think it's still worth doing 2 years fixed? Especially since the rates could rise (possibly not) from next month?

    If I go with
    2 years at 0.99%
    3 years at 1.38%.
    4 years at 1.64%
    5 years at 1.59%

    I don't see the rates rise more than 1% in the next 5 years.
    In the past 9 years, the rates kept going down. They can't raise that much without affecting the market horribly. Especially now after the uncertainties. Hence I think the 2-year deal is the most attractive. Although I still need to find out how much a solicitor costs for a remortgage purposes.

    What do you think?
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