Could we get a better deal?

speedyjoe

We are looking to remortgage, our mortgage provider has offered us a deal of a flexible tracker product for life at 0.49% above BOE base rate, so 4.99% currently.

The amount is £63k and the property value is about £200K+ The income of applicant one is £14k gross and the second applicant is a stay at home parent. We have an excellent credit rating.

As far as I can tell it's a pretty good deal but the company wants about £1300 in fees. These fees include a £295 "Mortgage Review Fee" apparently it's a fee to close our original mortgage, but as the mortgage offer from 1999 states there would be no redemption fee could we get this waived do you think?

There is also a £75 change of repayment type fee because we are changing from interest only to part repayment. This seems a little mean because I can see no real reason for charging it, again could we try and haggle over it?

So is there any better deal out there or could we haggle? I think with the quite high income to loan ratio this seems pretty unlikely but does anyone know better?

TIA

MortgageMamma

Hi There, my first thought is, is this the cheltenham and Gloucester tracker?

If so, where have you obtained details, are C & G yur existing lender or are you going through a broker?

You are right, if the fee's are being charged by a broker that is extortionate for a 60 remortgage, and could well counter act any savings made by remortgaging. Personally I do charge a fee, but for a 60K remortgage I charge £295 and I build my charges up on a scale of the size of the mortgage. That is more like a reasonable fee in my opinion.

If this is a charge from your existing lender, it could be that this is an early repayment charge as you are still within a previous tie in period.

Please advise which on it is and I will try and help you further

MM

herbiesjp

Sounds life Northern Rock

The fees do make it quite a high price to pay for a re-mortgage deal. THose fees are on the high side

I'm sure you may be able to find deals out there with lower fees to pay - depends on what exactly you are looking for from the deal though.

As MM rightly says if they are broker fees they are indeed high, especially as you can find advisers who do not charge a fee, if you are looking to keep fees as low as possible.

speedyjoe

Yes our provider is Northern Rock, our original mortgage was taken out with L&G before they sold their mortgage business to NR.

Having had a quick look around a few other providers web sites it seems BOE + .49% is pretty much a common rate for a lifetime tracker product. But the fees do seem high.

I would happily go with another provider but no other company I have looked at seems like they would offer 4.5 times our joint income. Is there anyone else who would?