Exit fees, arrangement fees, remortage advice needed!

jedeye

Hi all,

When I arranged my mortgage with the Chelsea BS 2 years ago the exit fee was 95 pounds, and on current literature they say the exit fee is 175 pounds. Which one do I have to pay if I remortgage with an different provider, and is there a case for only paying the old fee?

I think I have found a great remortgage company in the shape of INGdirect´s Flexible mortgage. Some questions though: are peoples experience that no fees (arrangement, legal, valuation, etc) with ING really does mean no fees? The rate of 5.14% seems great but is this liable to change dramatically when rates (most probably) will go up early next year?

I suppose as they claim that there are no fees for exiting the mortgage I could always remortgage again!

Regards for any advice-comments on my circumstances.

jedeye

UK007BullDog

If you check the board here you will find that this has been discussed the last week/last few days.

Yes, the ING might be a good deal, however I truly believe we will see another 1 to 2 rate rises. Can you then still afford the mortgage if your payments go up by 0.5% or more. What if the people have gone totally crazy and bought all the stuff on sales and the housing keeps going further up then the Bank of England might raise the rates even further.

Only you can make the judgment if you want to chance it on a tracker as such or if you fix it now with all the associated costs. Have you checked what your current lender is willing to do for you, especially if you mention ING's deal? There were 4.8% type deals about fixed. They might be cheaper for you in the long run even with the costs. It just means you speak to a broker or do the legwork yourself.

Lib_3

Yes I tried applying for INGdirect's mortgage service recently - like you I was attracted by their apparent 'no fees, no hassle' promise. What a joke it turned out to be!
A month later (and many phone calls and several letters later) I'm still waiting for my mortgage offer letter. They kept asking for additional information to prove my income (my salary slip apparently wasn't good enough), kept claiming hadn't arrived (blamed the post!) when in fact they had allocated to another mortgage number, and finally asked me to get my Employers to confirm that they paid tax to the UK authorities! This was a new one on me.
I think the trouble is that they apparently launched only in October - still feeling their way perhaps? and don't forget that they can move interest rates up to 0.95% above base rate. What likelihood that interest rates will stay as they are? They have come under some recent criticism on their savings account rates.

jedeye

Thanks for your responses - it´s always useful to get real feedback from people who have actually used or tried using ING for mortgages! I do think that rates will go up (possibly Feb) by 0.25% but the fees are important to me as I hope to remortgage on a debt of 50k pounds and so these fixed fees make a big difference.

Regards.

UK007BullDog

A lot of lenders offer good deals on remortgages with fixed fees.

Have you spoken or tried a broker to see what they can pull up for you?