Help Remortgage query

fh97

Hi

I have applied for a remortgage but my current uncompetitive lender calculates interest monthly so they want me to charge me an extra 1 months interest £762. because If i redeem before 30th june i have to pay redemtion charge £3,400.

Is it better to pay variable £1000 mortgage payment with current lender until end of July and then switch to my new lender on the 1st August monthly payments £830 + daily interest calculation. ?

Also my currrent lender is charging discharge fee is this right ?

Thanks.

MortgageMamma

You can stil apply for a more competitive deal before 30th June. the lender can only charge you if you complete the remortgage redeem your mortgage before the 30th June. If you applied for another deal now you would stipulate to your broker and on the lenders application form that the mortgage is NOT to complete before 1st July. What I am saying here is that there is really no need to go on to your lenders variable rate whatsoever. I would recommend you speak to a whole of market mortgage advisor who will find a more competitive deal for you, but do remember to ask your current lender what they will offer you to retain your business. Who is your lender by the way?

MM

I'mcomingbackasaman

My 2 year tracker is up on Dec. 20th. I'm with Abbey. I rang and asked them if they could give me some figures now in advance of the date, and I was told they would charge me £1000 for the figures now and that I would have to ring back on September 20th (exactly 3 months prior to date) I was a bit gobsmacked about this? Sounds crazy to me as I could have simply rang as a potential new customer and asked them for figures.:rotfl:

Also if I move my mortage before Dec. 20th to another provider I would be charged a penalty fee of £923.21 plus admin of £225! If I wait until Dec. 20th I will only have to pay £225.

What's your opinion Mortgage Mammy.

Slayerx

As stated above when you get a new product just make sure you dont redeem your old one until the ERP expires which you can advise the broker or conveyancing firm.

MortgageMamma

My opinion is that I have never heard of abbey charging £1k for the privilidge of knowing their rates! I don't think they truly can possibly know what their mortgage rates will be in december, I'm not sure but you could have misunderstood what they were saying?

That said, Abbey are well known for having very poor customer retentions products, for example lenders like First Active and Nationwide are really good with existing customers at the end of their deals, basically offering what a new customer would get, whereas abbey or halifax will offer you a higher rate.

Your best bet is to speak to a whole of market broker around sept/oct and get their opinioin on the best product available.

MM

I'mcomingbackasaman

MortgageMamma wrote:

My opinion is that I have never heard of abbey charging £1k for the privilidge of knowing their rates! I don't think they truly can possibly know what their mortgage rates will be in december, I'm not sure but you could have misunderstood what they were saying? (quote)

I repeated it back to him what he said I was gobsmacked. I just wanted an idea of what they're offering now to give me an idea of what may be on offer in December.

(quote)That said, Abbey are well known for having very poor customer retentions products, for example lenders like First Active and Nationwide are really good with existing customers at the end of their deals, basically offering what a new customer would get, whereas abbey or halifax will offer you a higher rate.(AbbeY)

It's put me off continuing with Abbey, I've never missed a payment and was treated like a nuisance call. I have already enquired with a market broker who has found me a better deal, less monthly payment and 4 years knocked off, just have to time it for 20th December.;)

Thanks for that:D

herbiesjp

Dont forget Abbey's £225 closing fee in your figures