Changing mortgages and freeing up money?

AndrewSmith

My advice is that your first phone call should be to your existing lender HSBC to see what retention or swap deals they are offering.

This way you may be able to secure an better rate (and possibly consolidate) without necessarily incurring all the associated fees.

Do not be enticed by the promise of a low interest rate with a new lender as the overall cost including the possible fees (valuation, legal fees, arrangement fees, deed release from your current lender) may actually make it more expensive as a 'true' cost comparison against something on a slightly higher interest rate with your existing lender.

Also, something with your existing lender may take a matter of days to arrange whereas a new mortgage with a new lender can take anything up to 6 weeks.

Andy

Joe_Bloggs

@tarkwin
It might be a good idea to try and find out if you can get a deal from your existing lender. This may cost you a mortgage fee but could avoid other costs. Ask for a redemption quote to see how much it will cost to leave your lender and perhaps make your lender appreciate your serious intentions. Rmortgaging often costs a lot of money. Some lenders offer free valuation and legals but charge a subsantial £400-600 in fees. some dont charge anything but offer a poor interest rate.
J_B.

humfer

Seems perfectly feasible. Why not ring up your current mortgage company and ask them if they will increase the amount? It may be cheaper that way as you won't have to pay all the usual admin/legal fees if you move to someone else. Although I wouldn't normally suggest it, you could always extend the mortgage by another few years to reduce montly payments to give you that bit more each month