Re-Mortgage

mikeydpippin

I am about to remortgage thanks to this site i have came across a well known company who can offer a mortgage of 4.99% with a £1350 charge added to the mortgage and a set up fee of £125 what do you think is there better out there(it's over 2 yrs fixed)

_Andy_

Better in terms of what?

mikeydpippin

Better in terms of interest rate therefore lower monthly repayments

_Andy_

In that case, no.

GETITPAID

You will struggle to find a lower rate on the market just now ,however you should relise that the total fees of £1475 are high.If this is added to your mortgage you are paying over £60 a month for the prilage of getting this mortgage .Please please remember that a lower rate does not always mean lower payments when high fees are taken into consideration.

mikeydpippin

Okay guys point taken,so please advise, I have 54k left on mortgage with 8yrs to run would like availablity to over pay by £450 pm. Mortgage due for renewal in Nov 08.What would you advise? Northern Rock at present not wanting to encourage me to stay on , no offers.

_Andy_

Which is the lender you mentioned in your original post?

mikeydpippin

[EMAIL="C@G"]C@G[/EMAIL] Andy 4.99% is available from Tuesday 26th Aug

_Andy_

Ah OK. Well if it's lowest monthly payment you're after that'll probably be it. Only thing I'd say with C&G is their service levels (in terms of setting up the mortgage) are pretty shoddy so be prepared for a bit of a delay.

mikeydpippin

Thanks Andy,Your advise most welcome,what other options are there after all if £60 p.m can be saved let me know wahat other paths to walk on.You have the knowledge and contacts advise welcome,Thanks Mike

Locoblade

As others have said, lower fees are often more important to look for than a lower rate, especially with a small mortgage. If you had a £300k mortgage then a low rate with big fee might be a good option, but with 54k its not worth it.

Ive just plugged your figures into a spreadsheet Ive got, and at 4.99% over 2 years adding £1475 to the mortgage, you'll pay £700 a month and will end up with £43600 on the loan at the end of that period. If you went with a loan at 5.99% with no fees, you'd end up paying £709 a month and end up with only £42800 capital, so only £10 a month extra for 2 years to end up with £800 less capital owed.