Help-mortgage tie in so need to change

Fay

We are just coming to the end of our first year of the mortgage on our new house (started last august) and we have had a letter letting us know what the new rate is. Our mortgage will go from 430 a month to 620 :eek: we knew when we took it out that there was a tie in period following the disount, but at the time natwest were the only lenders who would mortgage us as my partner had not got 3 years books (self employed). I think I should be able to find a much better deal elsewhere, the interest rate on that is 6.59% on a 90k mortgage (not sure how much we have paid off in a year!).

Anyway, I am really bad at this kind of thing, I need to call them and find out the penalty but if I remember rightly it was 2.5k, but if I can find a good deal to bring down my repayments to what they are now, I will save that much.

But I'm not sure how I go about any of this, can anyone help please?

regularsaver1

have you gone back to natwest to see if they have another deal to go on next month?

Fay

No not yet, I've only just got in from work and got the letter. To be honest tho I would be loathe to stay with them as their customer service last time was terrible

regularsaver1

may be worth looking there to avoid having to possibly prove income again - or it it more simple for you now?

Ian_W

To save the £2500 penalty by switching you're going to have to get a very good interest rate to move to. For example, Nationwide have a 4.37% 24 month tracker which on a £90K repayment mortgage over 25yrs is about £490pm, on the face of it saving you £3100 or so over the 2 years. However the fees are £600 and it's quite likely your existing lender will have an admin fee to end the mortgage thus making no saving whatsoever.

I would suggest you see what Natwest will offer and then see a broker to see if they can beat it. Read Martins article on remortgages if you haven't already as there is lots of info about remortgaging. No point in remortgaging if you're not going to save money doing so, whatever Natwest CS is like!!

Fay

Thanks guys, my friend is an independant FA so he is coming round to see me this week...fingers crossed