Remortgage Early - Avoid Redemption Fees?

dewmass

Andrew - You are a star. How about one more bit of help.. I'm down to the final 3.
1) Skipton Base Rate Tracker - 4.99% No Fee,unlimited overpayments £150 cashback
2)Woolwich Lifetime Tracker - 4.99% Can't see much info on site but it seems completely flexible
3) Melton Mowbray 4.84% with £499 fees and unlimited overpayments

What do you reckon?

AndrewSmith

1) Skipton deal is not time limited plus the rate and lack of initial fees is attractive.

2) Woolwich, good products however nightmare application process and one of the worst customer services organisations I've ever dealt with. Probably why Barclays have announced they are disbanding it.

3) Time limited to 10 years, slightly lower rate and complete flexibility to change, or stay on a good tracker rate for the entire 10 years.

My own money if it were me? Mortgage adviser hat off I would go for either Skipton or Melton Mowbry. Myself personally I would favour the longer term tracker giving complete flexibility, and knowing that even if I stay with them I don't have to 'rush' out to change lender/product again in 3 years.

It does all depend on the case specifics though, so please don't take this as financial advice, merely my own opinion.

What do you think?

ANdy

dewmass

I took this from the Skipton site
"Variable for the term of the mortgage based on the current BoEBR plus 0.49% - Which I'm hoping doesn't limit it to just 3 years. The lack of fees and cashback are really swaying me to the Skipton deal at the moment.

AndrewSmith

Apologies, yes it is 4.99% non time limited.

Hey it's late on a Sunday evening :rotfl:

My choice having looked properly would be the Skipton for exactly the reason that it is non time limited, and you have no tie in's whatsoever or limitations on overpayments, however based on the 10 year term and slightly lower rate the Melton Mowbry is a very close runner also.

Monthly Payments would work out at approx £583.09 based on repayment over 10 years for the Skipton.

I think it's down to personal choice as they are so very closely matched.

Andy

regularsaver1

have you considered that you will have redemption penalties anyway

currently £175 early discharge fee and £50 deeds dispatch fee with halifax if you leave early

worth considering all fee's when remortgaging

dewmass

I wasn't going to leave my current deal early, but wait until November 1st. I thought that meant I'd have noo fees from the Halifax

AndrewSmith

dewmass wrote:

I wasn't going to leave my current deal early, but wait until November 1st. I thought that meant I'd have noo fees from the Halifax

There will always be some kind of exit fees, I have listed them on the products I showed you yesterday.

By waiting till the end of your redemption period you are saving the 'penalties' for leaving early, however each lender does charge it's own exit fees.

regularsaver1

yeah you will still have the £175 fee and possible the £50 - this is applicable to anyone

when i mean early - i mean before the end of the term. take these into consideration when going to a new lender and they will probabaly charge to leave them later too

AndrewSmith

This is why if I were advising you as a client as opposed to simply answering a question on a forum, my initial discussion with you would be to source out the deals currently offered by your existing lender.

Whatever they came up with would then be compared on a true cost comparison against the likes of the ones we have already discussed.

Only then is it possible to ascertain which would be the most appropriate for you from a professional point of view (hence my signature). Such advice though is far beyond the scope of these type of forums.

Cheers

Andy

:beer:

dewmass

I see what you guys mean now, cheers. I called Skipton and they also charge £175 in fees if I were to exit so its obviously the norm. I have my mortgage in 2 parts from when I moved. When the deal on the first part expired Halifax didn't have any good tracker offers and so I'd ruled them out, I suppose I'd be better speaking to them to see if they'll get close to the Skipton offer.

Again, I really value the discussion and tips that have been offered, I've kind of hijacked the thread! Thanks

Have checked the Halifax site though, and their lifetime rate is 5.39% which is £10 a month more expensive!