Legal fees for a remortgage - roughly how much?

devon123

Hi there,

I'm trying to decide whether to go for FirstDirect +2.39% tracker or +2.09% tracker (but this one has £499 arrangement fee) - both have no tie-ins. They do however have legal fees. I have no idea how much this should be for a remortgage (surely cheaper that for buying a house for the first time?!).

My other option is to stick with my current lender (A&L) on their +2.49% tracker with no fees whatsoever.

Mortage amount needed: 95k
House valued by local agent(@ Feb 2010): 145-150k
Current deal 5.79% 2 yr fixed/30yrs.

I want to remortage to a 20yr deal.

Anyone have any ideas? Also, how long would I have to stick with the +2.09% to make up the £499 fee I would otherwise save by going with the +2.39% deal?

I realise I may fall outside their 65% ltv depending on their valuation, so I'd have to hope for the best on that one!

Thanks for your help.:)

Dan_1976

Some lenders will do it for about 250-300 but I would imagine if you went direct to a solicitor your looking at 3-500. Unless you have anything specialist going on.

getmore4less

http://www2.firstdirect.com/1/2/mortgages/our-latest-mortgage-offers

Offset trackers
base + 3.09% 3.59% 75%LTV fee £0
base + 2.39% 2.89% 65%LTV fee £0

base + 2.79% 3.29% 75%LTV fee £499
base + 2.09% 2.59% 65%LTV fee £499

tracker
base + 2.39% 2.89% 75%LTV fee £999
base + 1.89% 2.39% 65%LTV fee £499

If you don't need the offset and can get to 65LTV the regular tracker is even cheaper.

Your follow on is base + 2.49% is 2.99%

£300 would be a reasonable fee for legals with the panel solicitor.

whats the exit fee from A&L?

So comparing the 4 deals based on 65% LTV
£95k over 20 years repayment

1. 2.99% no fees £526.39pm
2. 2.89% £300 £523.30pm
3. 2.59% £799 £511.85pm
4. 2.39% £799 £502.52pm

To do like for like set the payment to £527(round up the biggest) for all deals
Break even months compared to staying put and month to pay of the debt.

2. Sep 2013 43m 238m(19y 10m)
3. May 2012 27m 231m(19y 3m)
4. Aug 2111 18m 226m(18y 10m)


If happy with A&L I think unless you want the offset facility you are not saving a lot for moving. It does depend on A&L rate tracking and not being more variable in their favour.

(used www.whatsthecost.co.uk to do the numbers)

devon123

Thanks getmoreforless.

My exit fee for leaving A&L is £295 (one of the highest there is I think!).

All in all, it looks like I'd be better off staying with A&L. There is a 2% redemption charge on the tracker with A&L. I don't think it's worth going for the offset as I have no real savings to speak of.

A&L is a BofE BR tracker. I hope to continue to overpay and bring down the capital. At the moment I am paying £605 a month and overpay £350. I also save £100 in to an ISA. I could handle an increase in the interest rate on those figures I think. I have been living very frugally for the last year or so in order to do this!

My deal runs out at the end of April, then reverts to 4.99% SVR (also terrible!!). I'd ring A&L if they were open, but do you know how much notice they need to set me up on a new deal once I revert to the SVR. Is it pretty instant? If so, I may sit tight until the very end of April before comitting to anything.

Many thanks for your help :beer: