remortgage costs

Karen_L_2

I have just remortgage on a 10 year fixed rate of 4.69% with the Leeds Building Society. Whilst there are better rates at the moment, I have taken the gamble that overall this rate will insure me against any future rises & remove future remortgaging costs. It also allows 10% overpayments a year so I am hoping to get my mortgage paid off in 5 years. However, I was unhappy that the Leeds wanted to charge a fee of £550 for a basic valuation even though I was only borrowing £100k & the cheapest properties in my area are all over £300k. I challenged this fee & although the Leeds initially insisted this was a condition of the mortgage, eventually they agreed a fee of £160 to do a 'desk-top' valuation. Although I still feel this is very expensive for a quick local comparison I am happy to have saved £390. This shows it is worth challenging the so call 'fixed' remortgaging costs. The Leeds do also charge a one-off £30 arrangement fee for NOT using their home insurance which I find bizarre (I wish someone would pay me for not doing anything!) which they would not negotiate, on but overall I feel I have got a good deal.

Ian_W

Hi Karen,
Welcome, nice story doesn't require any reply but good to see your challenge worked, great moneysaving. BTW, did you know that many home insurers will pay the fee for you if your lender charges you for not having their buildings & contents insurance?

If you didn't give your insurer a call and see if they will pay it, maybe some more moneysaving to be had!!

eileenfromplaistow

At the risk of stating the obvious, you can't repay a £100,000 mortgage in 5 years by overpaying 10% a year! And what about redemption penalties because it's a 10 year fix?

Karen_L_2

The Leeds 10 year fixed mortgage allows a 10% overpayment (10% of the original loan, not just the remaining balance) each year without penalties. I am planning to make the maximum overpayment each year (funds allowing) including a final overpayment in early 2011. Therefore the mortgage can be repaid with the monthly repayments & 6 lump sum overpayments in the next 5 years. I have put all of this on a spreadsheet including the monthly interest so I know it will work!

king_3

Just to confirm, look at the t&c if they will not charge you eraly repayment penalty, ie % of the original loan, which is quite common with fix rate deal. This is not as same as 10% allowence of overpayment.