Advice wanted re switching mortgage provider

kvasir

Hi all

I've just discovered that following a takeover earlier this year my mortgage is being transferred from Standard Life to Barclays.

I know too many people that have had too many problems with them (admittedly the banking side) so I'd rather take my business elsewhere.

I will phone SL after the bank holidays, but in the meantime if anyone can give me any advice I'd be glad to hear it.

I've been with SL just over 10 years and probably have about 35k left on my mortgage, which is capital and interest. How much am I likely to have to pay them to leave, and how much am I likely to have to pay my new mortgage company? Is the process straightforward, or more hassle than it's worth?!

And can anyone recommend any companies I might look into?

TIA.

VIGILANT22

The acquisition was on 1st January

Q...How much am I likely to have to pay them to leave
If you refer to the document KFI SECTION 10
it will thell you there.
10. What happens if you do not want this mortgage any more?


A bit more info for you here......

http://www.standardlife.co.uk/content/help/bank.html

kvasir

Thanks, no idea how I managed to miss all mention of this! (Guess they didn't want to shout about it...).

I can't find anything called a KFI but I did find last year's annual summary and it looks like I'd have a discharge fee of £200. Not too bad, I guess, but having had a shufti at some other companies their charges for transferring to them can be around the £2k mark. Would rather stick pins in my eyes than let the bandits rip me off to that extent!

VIGILANT22

I dont think you're understanding completely...when people have high charges to transfer that means they are have agreed to be tied into a deal and they want to break the contract... the fees relate to early repayment charges/breaking the contract....The rate you're on is probably around 5.34% depending on yr circumstances more competitive rates can be found.......

kvasir

Don't know what you think I'm misunderstanding. I realise I have to pay a discharge fee to leave SL and will need to pay a fee to my new provider. I'm just baulking at paying £2k for switching; the new company will make a mint out of me in interest so to charge such a high fee for my business seems to me to be taking the proverbial...

I'm on 6+% (I forget what the fraction is) so I'm sure there are cheaper rates about. Sheer laziness and the thought of incurring fees have put me off to date but this has given me the nudge I need.

firesidemaid

depending on your credit rating / financial security and your loan-to-value rate then you can actually pay nothing to switch with someone like first direct.

kvasir

Ah, that's good to know. I'd imagine my credit rating is ok (lots of debt, but it's getting paid back without any problems) and the flat must be worth around three times as much as the outstanding mortgage. Seems like I have a bit of research to do, cheers.

firesidemaid

not necessarily.

i had 2 credit cards, which i'd only used for stoozing - all the money was sitting in savings accounts making me money - but they made me pay it back before i could get the good mortgage deal.