Remortgaging..painful or painless?

Storminmike_2

House value £130k ish
Mortgage with Abbey £50.4k
LTV 39%

Reducing to £34k in 8 years
12 years in total

SVR 7.09% (£298 pcm) (£38k interest)

Best they can offer
SVR-0.3% @ 6.79% no fees(£285) (£36.5k interest)
BOE+2% @ 6.5% £1299 arrangement fees (£273pcm) (35k interest)
BOE+2% @ 6.5% add 1299 to mortgage (£280pcm) (36k interest)

Woolwich
Lifetime Tracker
5.59% (£235 pcm) (£30k interest)

So at worst I can save £38 pcm and 5k mortage liftime interest

Being on SVR expects no early repayment charges
Mortgage since late 80s

What charges are likely?
Do I have to get my own solictor to help
Is there a seamless switching process or do I need professional help?

Abbey...."New Customers Only":mad:
Abbey...."Shocking arrangement fees":mad:

dimbo61

Hi Mike
If you are not happy with the deals offered by ABBEY then contact
WOOLWICH and find out the costs to move lender.
If you are happy to go onto the lifetime tracker you could use the £65 a month savings to overpay your mortgage !
Just check with the woolwich GOOD LUCK

Storminmike_2

dimbo61 wrote: »

Hi Mike
If you are not happy with the deals offered by ABBEY then contact
WOOLWICH and find out the costs to move lender.
If you are happy to go onto the lifetime tracker you could use the £65 a month savings to overpay your mortgage !
Just check with the woolwich GOOD LUCK

I feel for once Abbey are truly playing the "New customers only" card.
Now I know they don't offer advice but I did the calcs myself based on a fixed position. The worst option was BOE + 2% + add arrangement fee to your mortgage

BOE+2% @ 6.5% add 1299 to mortgage (£280pcm) (35.9k interest) + 51.7k outstanding loan =51.7+35.9=£87.6k

I was also offered
SVR-0.3% @ 6.79% no fees(£285) (£36.5k interest)+ 50.4k outstanding loan =50.4+36.5=£86.9k

but I worked this out
SVR-0.3% @ 6.79% no fees + pay off £1299(£278) (£35.5k interest) 50.4k outstanding loan =50.4+35.5=£85.9k


Woolwich
Lifetime Tracker
5.59% (£235 pcm) (£30k interest) =50.4k outstanding loan =50.4+30=£80.4k

May include a booking fee though but the differential is at worst 85.9-80.4 or 5.5k lifetime

The question is then will the costs to move burn up the 5.5k?
What are these likely to be?

Thanks.

dimbo61

On the website it talks about £995 fee and free valuation plus free legals if you use woolwich solictors.
Not sure about any other fees but you need to give them a phone call
Maybe exit fees from abbey !!

Storminmike_2

dimbo61 wrote: »

On the website it talks about £995 fee and free valuation plus free legals if you use woolwich solictors.
Not sure about any other fees but you need to give them a phone call
Maybe exit fees from abbey !!

Thank you. I will consider giving them a call

The way I see it is if they can convey it across with minimal fuss then I'm in.

If I eat up around £1200 to do it I'd stll be quids in with 5.59% versus Abbey's best deal of 6.79%. I know both can go up and down but this is the only comparison I can make.

With best Abbey renegotiate I'd still have a lifetime differential of 5.5k and a £43pcm saving by switching

SVR with Abbey gives a lifetime differential of 8k and a £43pcm saving
a whopping £63pcm saving

it would be daft not to.

Abbey exit fees, are these the fees that are being discussed as being higher than those in force at the time I took the Mortgage out?

Thank you for your advice....Mike

_Andy_

No, the exit fee is detailed on your offer/KFI. Abbey's usual is £225 (referred to as an account fee).
Obviously if they attempt to charge you more than what is stated on your original documentation then you could claim that back.

space_rider

Yikes. I thought my offer from abbey of 1.09 above BOE base rate with 699 fee over 5 years was bad.

dimbo61

If you do take the woolwich lifetime tracker use the money saved from what you are paying now to overpay the mortgage.
If there are more cuts overpay even more and then if rates go up it wont hurt so much GOOD LUCK in whatever your decision.

Feline-Fan

Hi,

We re-mortgaged with London & Country Mortgages - The UK's #1 no-fee mortgage broker! http://www.lcplc.co.uk/
Didn't have to pay a thing! Took approx 2-3 from 1st phone call to completion.
We were with Abbey! Now with Scottish Widows

Storminmike_2

space_rider wrote: »

Yikes. I thought my offer from abbey of 1.09 above BOE base rate with 699 fee over 5 years was bad.

I take it you were either treated as a new customer or this was a while ago?

Still reeling at the cheek of the £1299 booking fee. That's just not real is it, especially as the government has offered money on a plate.

Maybe Abbey is muscling in on Ticketmasters territory

_Andy_

Storminmike wrote: »

I take it you were either treated as a new customer or this was a while ago?

Still reeling at the cheek of the £1299 booking fee. That's just not real is it, especially as the government has offered money on a plate.

Maybe Abbey is muscling in on Ticketmasters territory

Presumably you'd be happy with much higher interest rates and no booking fee?