Remortgage Advice

Ad28

Hi All

Looking for some advise about remortgaging, we are currently on a 5 year fixed at 5.9% had 10% deposit FTB on a house that we have renovated we recently had it valued and now worth 225k (estate agent valued)

we have a mortgage for 148k.

I ve checked with natwest who we have our mortgage with and it will cost us 5k to get out of.

Looking at some of the rates which are as low as 2.79% fixed for two years would reduce our monthly payment by £300 over the the two year would be a saving of 2k

To me this seems a wise move ? What would you recommend?

Who's best to see a indepent mortgage adviser or our bank?

Thanks

kingstreet

How long is left on the five year fix?

Ad28

Hi

Around 3 and a half years.

kingstreet

First of all, let me declare that I don't like remortgages where penalties are paid in an endeavour to rate chase.

Firstly, I suggest you use £200k as the likely valuation figure for your remortgage, as £225k for an estate agency valuation could be over-pricing. The best deal may be lost to you as a result of this. See next paragraph.

Will you pay the £5,000 penalty in cash, or will it be added to the mortgage? Are you keeping the same term? Based on £148k on £200k, the best deal I can see is 2yrs fixed at 3.49% with C&G. There's a £1,395 fee payable. Is that likely to be added to mortgage, or will you pay it upfront?

What happens in two years? What if rates have risen and the best option in 2013 is higher than the 5.9% you gave up in 2011?

Will you save enough to justify the £6,400 in fees?

I don't know the answer here, but I hope I've given you some things to consider in conjunction with the advice/info you'll get from others.

Al the best!