Re-mortgage advice please

JennyW_2

We're with Northern Rock and our 2 year fixed rate will expire Jan 07. Today I received a letter advising me of some new rates with them for a new product.

Of course the best products have a mortgage fee of £995 :eek: and all products carry a £295 review fee (seems to get more expensive over time). the products they are offering are for 1.5 and 2 years.

Now do we stick with Northern Rock and absorb these costs into our mortgage or do we go with another lender? However I'm sure that if we switch lenders this would incur the services of a solicitor so may cost us more in the end.

Any advice greatly appreciated.

Oh, and Northern Rock want to know our decision of the offered products by 25.10.06 so it doesnt give us long, plus I'm worried if we dont decide by this time, they will then only offer us products with higher interest rates.

herbiesjp

JennyW wrote:

We're with Northern Rock and our 2 year fixed rate will expire Jan 07. Today I received a letter advising me of some new rates with them for a new product.

Of course the best products have a mortgage fee of £995 :eek: and all products carry a £295 review fee (seems to get more expensive over time). the products they are offering are for 1.5 and 2 years.

Now do we stick with Northern Rock and absorb these costs into our mortgage or do we go with another lender? However I'm sure that if we switch lenders this would incur the services of a solicitor so may cost us more in the end.

Any advice greatly appreciated.

Oh, and Northern Rock want to know our decision of the offered products by 25.10.06 so it doesnt give us long, plus I'm worried if we dont decide by this time, they will then only offer us products with higher interest rates.

You can find re-mortgage deals with free legal fees and free valuations included. Arrangement fee levels can vary form NIL to £1499 (that is not an absolute maximum - just to give an idea)

Don't let that date from NR scare you into making a rushed decision

dwight-van-man

Hi, the deals you've been offered are the cheapest headline rates available, but the is a fee save range on similar terms. For example the fee save version of the 2 yr fix with the £995 fee is 4.94% compared to 4.59% (to 85% LTV). If you did want to stay with NR, you can pick any product from the current range so have a look at the entire range before deciding. Also, the date for acceptance on the letter is to guarantee you get one of the rates mentioned if the range changes - if this date passes, you can still review onto whatever rate you like for the range thats available.

Best thing to do? speak to a broker and get the to evaluate NR's products against the market and decide from there.

JennyW_2

I find the whole process a bit daunting

Where can I find a broker to help me, just look through the yellow pages?

kenshaz

<SPAN style="FONT-SIZE: 12pt; COLOR: navy; mso-bidi-font-family: Arial">Step 2: Picking the right broker
try this link to Martin's article

kenshaz

Try www.lcplc.co.uk I have used them and they are in Martin's book the money diet,they are whole of market and fee free

MortgageMamma

There are various ways to find a broker, but the best way to find a decent one is word of mouth recommendation - ask around your family and friends before you do anything, and you need to make sure your broker is whole of market and fee's free - meaning they have to find you the best possible deal