Can anyone find a better deal?

catden

we are currently looking into remortgaging.

We took out a fixed deal in July 2007 for 5 years so have got some time left on this one but we are prepared to pay to get out of it (currently £993)

We hadn't really thought about it until now that we are paying way over the odds for our mortgage, as we can afford the repayments as we dont have a big mortgage.

we are currenlty on 5.63% and paying £262.88 per month and have 16 years left.

our outstanding balance is approx £34000, but thinking of adding an extra £4000 making it £38000. The house valued at £135000 so approx 28% LTV and want to pay over 16 years and not extend the period.

I haven't really looked into this in depth but the best deal i can find at the mintue is switching to HSBC

Lifetime tracker Special with maximum LTV of 60%
£38000 over 16 years
1.89% + the base rate = 2.39%
no booking fees and no exit costs
£238.00 per month

Can anyone find anything better?
All of the information on here to read is mind boggling! so i would be glad if anyone could help!

thank you

GMS

Paying to come out of a fixed rate to go on to a tracker is a gamble. If and when rates rise you could find yourself paying the same or even more than previously but having to pay for the privilege!

Your balance is relatively small so any savings will be quite small.

If you are paying to come out of the fix then it needs to be worthwhile. You have approx 12 months left on your fix so paying £993 to come out of it is around £83 per month. Unless you are saving this then it is costing to come out of it.

That said if you were to get into a long term fix you would be able to see the saving without risk. As a tracker can change the savings may be wiped out with rises in rate. Although there is no exit fee there may not be rates avaialble as they are today when rates rise.

Look at all options before deciding. With a low LTV and assuming no credit issues and affrodability you should have access to the best deals available.

Keep in mind fees for the new mortgage too. Valuation and legal fees could wipe out any svings on such a small balance. There are lenders who will do free valuation and legals so may be worth considering even if slightly higher rates.

A broker may be worth a chat. That way the legork will be done for you

handytips

There is a lifetime tracker with a lower rate than HSBC and that is with the Woolwich. However would i pay an ERC to get a Tracker product at the moment. NO. If i were you i would consider another medium to long term fixed, either a 3 year or 5 year product, There are some good deals out there with low arrangement fees and most come with free valuation and legals, or give a small cashback vice legals, there are plenty of solicitors out there via brokers who will do the legal work for the cashback which gives more control over the case. Another point HSBC do reject lots of applications for no apparant reason. I had a client rejected because they went into their overdraft facility once in a 12 month period ! So good luck with HSBC and i am glad that their products are only available direct, i can only imagine the headache's they would cause if they had the guts to sell via brokers.