Remortgage-------My Brain Hurts

Angela

What with APR's,Base Rates,Percentages,Valuation fees,Arrangements fees and Booking fees my brains really hurts.

Anyway remortgage time will be here for us come 3rd August,and I read in the paper the other day that if your due to remortgage soon get looking as deals are usually valid for 3 months or so and it is a good time to get something in writing as rates may be on the change.

Anyway been to money supermarket and had a look around and got some ideas of costs on a three year fixed,we are with abbey at the mo (cant get any offers from them till 3rd May)and having a look at all these extra fees I think that staying with the Abbey is maybe a better option.Theres only one that has less than £500 fees.
Also with abbey you can pay an extra 10% off per year,which we have been doing to compensate for endowment losses,these from the moneysupermarket you do not seem to be able to do.

Is there an easy way to take everything into account,and work out which will be the cheapest.Do I believe the true cost figure they give me,does this include all the extra fees and some of these are put on the mortgage which will cost extra interest,its so confusing.

Any comments gratefully received.

MortgageMamma

The best way to find which deal is best for you is to see a whole of market mortgage broker. They will be able to source a mortgage from all of the deals available on the UK mortgage marketplace to find the cheapest and most suitable one for you. With every respect for what you are trying to do there really is not much point to you scouring the internet for hours to find the best mortgage deal, when 1) A mortgage broker could tell you within minutes 2) there could be a better deal out there only available through an intermediary 3) you are indemnified for a mis sale should this occur if you place business through a mortgage broker but you would not be if you went directly to a lender as they can only advise on their own products 4) the mortgage broker is there to take the hassle away for you.


If you have not used a whole of market mortgage broker before then ask around friends famiy and colleagues for a recommendation. Once you find one you feel you can trust its best to hang onto them and build up a good relationship over the years. Many brokers will operate on a no fee's basis and simply work on a procuration fee basis, however the ones that do charge fee's can be equally as good value.

A broker will also do a true cost comparison for you, which you can see if you want to, which will show you how much the loan will cost you including upront and added fees, this should give you an extra reassurance that you are getting good value from your mortgage.

HTH and good luck

Lisa

KTF

After you have seen a broker you could punch the numbers into my spreadsheet and compare the deals if you wanted. Send me a PM as per below if you are interested.

MortgageMamma

why would she need to do that if a broker shows her the true cost comparisons? Its exactly the same thing!

Angela

Do moneysupermarket not cover the whole of market then?

MortgageMamma

I've no idea. Unless it specifically states so on the site I would doubt it. Whole of market is something a site would accentuate for marketing purposes.

herbiesjp

Money supermarket sell their enquiries as mortgage leads on to brokers who will then get in contact with the person making the enquiry - I suppose it will depend on that broker as to whether they are whole of market or not.

payless

MortgageMamma wrote:

why would she need to do that if a broker shows her the true cost comparisons? Its exactly the same thing!

The difference being the "true cost" and the "cost over the incentive period " ... IMO a broker should ( and likely does) consider both before making a recommendation

MortgageMamma

Agreed payless, I tend to regard the true cost as being over incentive period plus any overhang (if there is any) as the actual true cost. Not many peeps sit around on the SVR's these days so the true cost over the term of the whole mortgage is not very useful IMO. Not seen you on here for a while!

payless

Been on holiday

TangentMan

Do whole of market brokers have access to exclusive products only offered through certain mortgage clubs (as opposed to general intermediary exclusives)?

My opinion is that the cost of the mortgage over the life is a useful tool. Especially for mortgages that are either lifetime trackers or those that do not go onto SVR after a preferential period.

It also helps people balance out the cost of remortgaging (which as we know is not just about application fees and Early Repayment Charges but also about exit fees.