Remortgaging- fees

dori2o

I'm looking to remortgage, but I'm worried about the cost of fees. i.e. arrangement fee etc.

Are there any good fee free mortgages out there, or any lenders who will incorporate the fees into the mortgage.

I'm looking for about £50-55K, the house is valued at around £82.5K and the current mortgage has a balance of about £38.5K

matty_hunt

I was offered a 5year fixed 5.35% fees free with C&G for my £59000 but does have a £225 exit fee. (all mortgages have exit fees) From what I have read on these pages the exit fee is not fixed and could be increased without your knowledge before termination.
Would staying with your current provider reduce the overall cost by not having new valuation or legal fees?

dori2o

I was thinking of writing to my current provider as they have been very good, especially whan I was made redundant and missed 3 payments, they agreed to allow me to pay off the debt at a rate I could afford, didn't charge me, seemed to understand the circumstances, and didn't even cancel the dicount deal I had, which is normaly terminated after missing 3 payments. But, would they be able to offer me their fixed rate deal without charging me an arrangement fee, and as the house has nearly doubled n value since I bought it, would they insist on a valuation.

matty_hunt

From what I gather, if they advertise a deal with an arrangement fee then you have to pay the arrangement fee. There is no negotiation on that. Obviously not all deals have an arrangement fee though. Don’t know about the valuation.

UK007BullDog

There are fees free remortgage deals however their interest rate might be a bit higher than if you paid the fees up front.

You do have an exit fee to pay to your current lender if leaving. Anything from around £80 - £350.

dori2o

OK, just had a look on my BS website and they have a couple of decent deals I may be tempted by (fees with remortgages are debited to the account after completion so nothing to pay upfront). I started my current mortgage in October 2002 with a 5 years step discount deal, when would be the earliest i could contact them to ask for a remortgage deal.

herbiesjp

Always go to your current lender to see what they wil offer you.

Then you have a basis for comparison to see whether you will be saving money either staying where you are or after paying any any exit fees/set up fees

HTH

tesuhoha

I am also thinking of remortgaging with the Nationwide. I have just looked on their site and they are offering 5.18% with either (£499) fees up front or included at the same rate. There is a £100 discount for existing customers. What I'm wondering is, is it a good time to remortgage? My OH heard today on the news that the interest rate will go down later in the year and now is not a good time to remortgage.

UK007BullDog

Dori:

Stepped mortgages are evil. I suggest you stay well clear of them. I mean they start of right low but can really bite you hard years down the line and the tie ins are also quite evil. I suggest you find yourself a local fees free independent, whole of market broker.

Tesu;
I think your hubby has misunderstood. The rates are going up. They will not fall this year.