New ReMortgage 60k on 180k house

rich_uni

Hi All, I've just finished my discounted mortgage of 3.89 with The Nottingham they have offered me a remortgage to 60k at 3.99 a discounted rate on their variable. I'll be able to make as many over payments as I like and finish when ever and not tied in. Which is important to me.

There is a fee of 199GBP to sign up. This doesn't sound bad to me. Any others which I should consider?

Many thanks, Rich.

dimbo61

Well it would only cost you £199 to sign up for this deal and I like the idea of unlimited overpayments but you still have £60,000 owing on the mortgage and rates will rise so check out any good long term fixes 5/10 years to finish off the mortgage some deals at 4.79% 5 years and 5.49% 10 years!

rich_uni

For me over paying is must. They also offered me 4.29 fixed until June 2012 or 4.79 fixed until June 2013.

For now I think I'll stick with them at the 3.99 discounted and overpay every month.

Thanks for the reply.

luckyfool

£199 isnt alot of money, but on a mortgage of that size swopping products every 2 yrs then those £199 fees will add up quite quickly. Equally 3.99% variable is not an especially hot rate of interest. I would be checking the rest of the market first before committing as you might be better with either a lifetime tracker, longer term fix, or a shorter term fix that has a competitive long term reversionary rate. e.g. Your Nottingham deal will keep reverting to their SVR which is currently a horrific 5.99% (5.49% over base rate). There are lenders where you should be able to get a reasonable 2 yr fixed rate that reverts to around 2% over base for the balance of the term, or lifetime trackers at around 2.99% fee free (1% better than your current short term deal). Going down that route would potentially remove the need to remortgage again in the future.

Tradeoff potentially might be a limited overpayment facility in the 1st couple of years of 10% of the capital, having said that the penalty could be as low as 1% so you could still overpay more than the 10% and just take the penalty on the chin if required, still being better off.