Remortgage

jackiejayne

Hi

My current mortgage deal ends the end of this year and l have received the information below from my financial adviser regarding changing to a new lender or sticking with what l will go onto when it ends.

I do think my advisor would like me to move lender because he will make some money out of it but l would prefer to stay where l am as it is a hassle to move what do you think taking into account the current climate

your mortgage options are as follows.

1. stick with the halifax when your current deal ends - you will go on to their standard variable rate which is currently 3.5% and you will be paying around £1,230 per month
2. stick with the halifax when your current deal ends but go on to one of their new deals that are available to you as an existing customer - this isn't the best option as halifax hasn't got any decent deals available - the only advantage of doing this would be the application process is very simple indeed but there are far better deals available.
3. look elsewhere and possibly take advantage of a low fixed rate.

fixed rate deals

2yr deals

2.77% costing £1,200 p/m - £995 arrangement fee that can be added to the loan - free valuation - free legal fees

3.08% costing £1,214 p/m - £195 arrangement fee that can be added to the loan - free valuation - free legal fees

3yr deals

3.14% costing £1,226 p/m - £999 arrangement fee of which £900 can be added to the loan - free valuation - free legal fees

3.19% costing £1,227 p/m - £744 arrangement fee of which £595 can be added to the loan - free valuation - free legal fees

5yr deals

3.69% costing £1,267 p/m - £995 arrangement fee of which £800 can be added to the loan - free valuation - free legal fees

3.95% costing £1,280 p/m - £0 arrangement fee - free valuation - free legal fees

Thanks
Jackie

Thrugelmir

Do you want a fixed interest rate product?


What are the follow on rates for the products you've listed? Are they above 3.5%.

jackiejayne

Hi

Not sure whether to fix or track

Have not been given the follow on rates

Do you think the bank of england will increase the rate over the next 2 yrs?

Thanks
Jackie

dimbo61

Hi JJ I notice this is your first post and we know nothing about you !!
Income, job, job security, LTV, mortgage balance, age, KIDS! plans etc
So we can only guess if a 2/3/5 years fix would suit you!
Can you afford if rates do go upto 5/6/7% over the next 5 YEARS ?
Are you planning on staying in the property for at least the next 5 years ? does your job, career mean that you might work all over the country/world ?
What we do know is that rates have never been this low and taking a long term view ( IE a mortgage is normally over 25 years!) the 5 year fix is only 0.16% more than you will go onto in 3 months and gives you 5 years security!! Only my views GOOD LUCK

Thrugelmir

jackiejayne wrote: »

Hi

Not sure whether to fix or track

Have not been given the follow on rates

Do you think the bank of england will increase the rate over the next 2 yrs?

Thanks
Jackie

Hi,

To fix or not is very much personal choice. Often based on how tight money is. In the current low interest enviroment opting for the lowest rate and overpaying makes sound sense.

Longer term interest rates will rise to more normal levels.

Second guessing the BOE isn't possible. So no point trying.

Bigsmak

jackiejayne wrote: »

Hi

My current mortgage deal ends the end of this year and l have received the information below from my financial adviser regarding changing to a new lender or sticking with what l will go onto when it ends.

I do think my advisor would like me to move lender because he will make some money out of it but l would prefer to stay where l am as it is a hassle to move what do you think taking into account the current climate

your mortgage options are as follows.

1. stick with the halifax when your current deal ends - you will go on to their standard variable rate which is currently 3.5% and you will be paying around £1,230 per month
2. stick with the halifax when your current deal ends but go on to one of their new deals that are available to you as an existing customer - this isn't the best option as halifax hasn't got any decent deals available - the only advantage of doing this would be the application process is very simple indeed but there are far better deals available.
3. look elsewhere and possibly take advantage of a low fixed rate.

fixed rate deals

2yr deals

2.77% costing £1,200 p/m - £995 arrangement fee that can be added to the loan - free valuation - free legal fees

3.08% costing £1,214 p/m - £195 arrangement fee that can be added to the loan - free valuation - free legal fees

3yr deals

3.14% costing £1,226 p/m - £999 arrangement fee of which £900 can be added to the loan - free valuation - free legal fees

3.19% costing £1,227 p/m - £744 arrangement fee of which £595 can be added to the loan - free valuation - free legal fees

5yr deals

3.69% costing £1,267 p/m - £995 arrangement fee of which £800 can be added to the loan - free valuation - free legal fees

3.95% costing £1,280 p/m - £0 arrangement fee - free valuation - free legal fees

Thanks
Jackie

Are the figures the best that your Advisor is providing?... So to save £30 a month you need to spend £995 arrangement fee?

I would only think about changing if you could save well over £100 a month. Especially if it costs you £1000 to set it up.