Can you help

tractorboy23

I would appreciate any advice. This is my first post.

I have a OneAccount, with an outstanding balance of c£75K. I pay approx £230 per month at resent. In general I have been happy with the account - though not the interest rates over the last couple of years - RBS have extracted the urine during that time. I am therefore seriously considering changing mortgage. But I have never done that - is it worth the hassle?

In almost exctly 5 years I will realise some cash which will basically pay off the mortgage, and that it exactly what I intend to use it for. Therefore would it be cost effective to change provider now with only say 55 - 60 repayments to be made. If so who would you recommmend? I imagine I have a good credit rating (wife and I both pay off all credit cards monthly and have no other debts aside from mortgage). What are the typical costs associated with canging provider and what are the pitfalls.

In advance - many thanks to all who take the time to reply. I hope that I am in a position to help others in the future.

tractorboy23

and serry aboot the spilling mistokes!

opinions4u

tractorboy23 wrote: »

I have a OneAccount, with an outstanding balance of c£75K. I pay approx £230 per month at resent. In general I have been happy with the account - though not the interest rates over the last couple of years - RBS have extracted the urine during that time. I am therefore seriously considering changing mortgage. But I have never done that - is it worth the hassle?

If it saves money, it's worth the hassle.

What are the typical costs associated with canging provider and what are the pitfalls.

It varies.

- You existing lender may have early repayment penalties and discharge fees. They may not. You need to ask them.

- A new lender will require a valuation. This may or may not be free depending on the new lender.

- A solicitor is needed for the legal side of the transaction. This may or may not be free depending on the new lender.

- a new lender may charge a fee for the prodcut (rate) that you move to.

So I ask you some key questions:

1) How much is your property worth?
2) What rate are you paying and is it fixed or variable.

You might want to check out alternative lenders' rates via a comparison site like www.moneyfacts.co.uk.

and serry aboot the spilling mistokes!

Using the handy <EDIT> feature can help you subtly change them without anybody ever realising .

tractorboy23

In reply to opinions4u

So I ask you some key questions:

1) How much is your property worth?
2) What rate are you paying and is it fixed or variable.


I would estimate that the house must be worth c£180 - £200K

The rate is 3.65% and is variable.

Many thanks for your reply

opinions4u

Thanks for providing the info.

HSBC have a deal that would reduce your rate to 2.49% (variable) for 2 year which would save you around £2,400.

To get this you would have to pay a £999 product fee. I don't know what it would cost to get out of your current mortgage and I'll let you check out whether there are valuation and legal costs or not.

If you are going to save £1,401 over 2years then it's worth it. But you do need to factor in a few other questions:

- does your lender have a deal that you could move on to?
- would you prefer a fixed rate (which would probably mean paying a little more)?
- would you prefer a longer term deal?
- the HSBC SVR at the end of the 2 years is currently more than you currently pay.
- are you likely to move (if so, check out that any mortgage deal has portability)?
- a whole of market mortgage adviser may charge a fee to organise things for you (but will guide you more thoroughly than a forum can!).

Hope this helps a little.

tractorboy23

Many thanks opinion - you are very helpful indeed:T