Re-mortgaging Stress!!!!

smokey172

Hi Guys

Wonder if you can give me any advice. I have tried to download the free re-mortgaging guide but it isn't working.
Our current 2yr fixed rate has just come to an end with the abbey.
I have seen a mortgage adviser and he suggested a 2yr fixed with the Nationwide on 4.85%
The most important thing for us is to keep our monthly payments down at the moment.
The outstanding amount on our mortgage is 137K and the property is valued at 180K
whats bugging me is all the extra costs involved. The arrangement fee for the Nationwide mortgage is £799, then the Abbey charge £225 as a release fee and also just had the info through from the Nationwide solicitors and they want to charge £230 for a deed of postponement. We have a 2nd charge on the property as family lent us our deposit when we purchased.
Now I am a conveyancer and paying this extra £230 really pisses me off as I know there really isn't much work that goes into a deed of postponement.

I would be quite happy to stay with the abbey but they will only offer a flexible tracker with matches the Nationwides interest rate and I am not sure that I want to take the risks if interest rates change.

So my question do any of you know of a 2yr fixed rate that matches the Nationwides with a low or no arrangement fee

thanks
Jo

tonydee

I'm sure someone can do the sums for you but remember just because a lender is offering a low rate doesn't mean it's the best to go for. Factoring in all your fees that you mention can make a huge difference.

Why not fix for longer and avoid the fee's again in 2 years time ? The rate will be slightly higher obviously.

Like I said though it seems most on here are very knowledgable so i'm pretty sure someone will help you out more professionally soon.

cattie

You do need to take all the fees into consideration as tonydee suggests.

When I wanted to remortgage last year I found that staying with my present lender on a discount tracker with no fees, penalties or tie in actually worked out cheaper over the term than the deal offered by Nationwide by the time all fees etc were taken into account.

At least if you go for a discount tracker & choose one with no fees or tie ins, then you are free to change providers any time you choose should a better deal present itself.

tonydee

I can say now though having only spoken to Abbey last week that a fee of some description will be payable if you do not wish to stay on their SVR.

Abbey :

Discount rates = £75 transfer fee
Fixed rates = £274 fee
Flexible tracker = £599 fee
Lifetime tracker = £75 transfer fee

So much to think about this remortgaging lark

smokey172

thanks for the advice guys.
I can see what you are saying but our immediate attention at the moment is to keep our monthly payments down, although I am conscious of adding to the mortgage with the fees

I have thought about increasing the fixed term so I don't have to go through this again in 2yrs time but again the interest rates are higher.

Abbey could only offer a fixed rate at 5.4% with a £275 fee or a tracker at 4.99% but a fee of £599

What's your thoughts on fixed or tracker? I did think about staying with the Abbey on the tracker as there are no redemption penalties but if the interst rates go up even by half a percent then I might as well go with their fixed

sooooooooo confused