remortgage advice needed

IClaudius

Currently with Britannia, outstanding £110k, currently on discounted varaible of 4.5%, paying £620 monthly.repayment mortgage.

End of discounted period, they can offer us 4.29% fixed for 2 years, (£606 per month) but with an arrangement fee of £499!!!

Over 23 years.

There are two accounts so to exit the two accounts is £185.

Can anyone suggest anything here as the arrangement fee is so huge?
Do they have the ability to waive this or not? Any other deals around which might be better?

Any help would be really really appreciated
:beer:

AndrewSmith

£499 for a rate of 4.29% fixed is not huge at all.

Will they still charge you the exit fee if you stay with them? I doubt it. If not then I would personally pay the £499 and take the 4.29% rate with them. It will be a seamless transfer without having to get valuations, involve solicitors etc.

However it is impossible for me to be completely accurate without all the details involved.

Andy

herbiesjp

If you are looking at fixed rates then I would grab this while you can, (good rate), as currently on the back of increased swap rates on the money markets lenders are increasing their fixed rate deals.

By staying with Britannia you will save on the £185, and even if you moved you would still incur those kinds of arrangement fees to get any good deals.

MortgageBroker_2

Mortgage arrangement/application fees have increased dramatically over the last year. Lenders are really ripping people off with unnecessarily high fees. Some lenders fees have doubled! (with no correlation in service levels)

Anyway, Britannia are unlikely to waive the fee as it is for a fixed rate. However, there is no harm in asking and most lenders have a Retention Dept who's job it is to keep existing customers.

Some comparison 2 year fixed rates:

Scarborough 3.94% £495 fee
Portman 3.99% £1375 !
N Rock 3.99% £1650 !!! (absurd)

By selecting a tracker or discounted rate again you may be able to reduce the fees. However, probably more important to select the type of rate (fixed, discount) that you are happy with first and then hunt around for the deals.

AndrewSmith

The Scarborough rate is not a comparable rate really though.

Check out the redemption till 2011 sliding scale of 3,3,3,2,1 % of the loan in each year. For a 2 year fixed it is discraceful. Also it would involve a valuation fee of £225 upwards and, I think, there would be legal costs also.

Andy

IClaudius

thank you everyone - the advice from these forums is invaluable. I will speak to Britannia about the fee. We know the fixed rate is good so will stick there#

Thx