Re-mortgaging

HaleyS

Hello , I am new to the chat forums. I am currently looking at remortgaging and cannot find a calcultor that covers what I want to find out!

I have an existing mortage with Northern Rock. This was fixed for 2 years. The mortgage value is £123000 with 23 years remaining. OUr house is probably worth about £150000 - £160000.

I am thinking of fixing again. I have been offered for two years 4.99 % but with review fee of £295. Monthly payment of £740.00

Or 4.49% for 18 months with £295 and £695. Monthly payment of £705.73.

However my boyfriend and I would like to start overpaying around £300 per month.

Therefore as we are overpaying I guess we really need to go for the lowest interest rate offered?

I am a little unhappy with Northern Rock as we had a £1000 help with costs which we were told at the time was "free money" however they now want this back as we are changing to a different product within 3 years - yet they new we were choosing a 2 year fixed mortgage. If we had fixed for longer we wont have to pay this back. We wouldn't have to pay this back if we stay on the SVR for 12 months. But as this is 6.5 % bearing in mind that we want to overpay I dont think this would be the right thing to do.

I would be really greatful if anyone can shine a little light for me. Thanks Haley

Snippy30

have northern rock offered these to you or have you seen and applied for them eslewhere yourself?

HaleyS

Hiya - Northern Rock wrote to me offering me 4 different products. However they offered me the 18 month product only when I telephoned them.

Thanks

MortgageMamma

Ok, the help with costs you get from northern rock always makes the product have somethign we brokers call overhang. that means you stop with them another x amount of time or you pay it back.

Have you arranged for any key features quotations to be sent to you in the post from northern rock? the deals they are offering you you should get in writing and only then can an accurate comparison be made with another product.

As for the 18 month or the 2 years products, you should pick the term you wish to fix in for and have the northern rock product compared to other mortgages on the market by a broker to see if there's anything that will be cheaper for you.