Remortgage Help please!

Sashcroft_2

We are looking to remortgage our house. The current mortgage is 70k, the value is approx 130k, and we would like 110k over 20 years - so that we can pay off the credit card and get some work done on the house. Ideally we would like it fixed for a few years, just incase anything drastic happens with interest rates. We dont have much savings, just 5k.

Ive look at all sorts of mortages, and just can decide which is the best buy! The OneAccount looks attractive, because it says it can cut 8 years off our mortgage, which appeals - and we might do a bit of stoozing to help this along. One of the things that puts us off is the charges/fees.

We are just soooo confused, but would like to get this sorted asap.

Can anyone give us some help/advice?

Thanks!
Stephanie

herbiesjp

By doing this you will be getting close to 85% borrowing.

How certain are you of your current property value? Being out on this figure, slightly over valuing, could mean going over 90% and rates/fees that match.

What has your current lender offered you?

One Account type deals can have higher rates, you may be better off looking at deals that allow overpayments or flexible deals that allow borrow back (if that is what you want).

You can find plenty of deals that offer freebies i.e. free legals and valuation but with widely differing arrangement fees

Have you seen any deals you like?

Sashcroft_2

Hello herbiesjp!

I think that we are possibly under-valuing are property - they dont come up for sale very often in our avenue, and the last one sold about 18mths ago for 135k - and ours is a lot bigger!

Ive not seen much that I actually like - Im interested in low/no fees, and low monthly payments, and we liked the fact that the oneaccount said it could be paid off 8 years early.

We are currently on the Freestyle mortgage with Standard Life - interest only - and want to move to Repayment - but they arent offering us anything spectacularly different to anyone else, and we would still have to pay valuation and legal fees

regards
Stephanie

herbiesjp

Hi Stephanie

One Account make a big play of paying the mortgage off early - however having the current account mortgage will mean the rates are higher.

If you overpay into another lender's mortgage product (choosing one with daily interest) you would be doing exactly the same thing - but without having to pay a higher rate for the benefit of a linked current account.

Are you sure your current lender will still charge legal fees and val fees? This does not seem right to me. I would double check. You would only be choosing a new product from them so an arrangement fee should be all that is applied from them.

Moonbeam

Why not contact London & Country to find out what they can recommend - I used them 2 years ago after reading the full article on this website and they were fantastic...............saves a lot of searching online :money: