1st mortgage advice

alberto2012

Hi all,

As the title says this is my wife and I's 1st mortgage. We have alot of questions regarding our choices but will ask one at a time....

My first question is IF we were to choose a 2 year fixed rate at 3.55%, and the time comes to re-mortgage, Do we have to pay ALL the fees again??
Fees such as :

Arrangement £ 900
Booking £95
Valuation £265
CHAPS £23.50
Lenders / conveyancing £117.50

Total - £ 1581

We would also have to pay an early exit fee ?? more ££'s..

So am I right in asking we are liable to pay all these fees EVERY TIME we re-mortgage??

Thanks for any help...

R_P_W

depends on what product you are looking to re-mortgage onto. a lot of mortgages do have fees, some do not but they tend to have higher rates.

Dont think All of those fees would be paybale, probably the arrangement and booking fee maybe.


Personally, I wouldnt go for a 2 year fix at the moment. I dont think there are going to be any significant rate rises for at least two years (but then what do I know).

If you are leaning towards a fix rate maybe look at a 5 year deal instead?

i have just taken a new mortgage when we moved, i was weighing up between a fix and a variable or 2-3 years, i went with the tracker rate in the end because it was 0.5% lower than the fix. So if the rates rise by 0.5% in next two years ill only end up paying what i would be on the fix.

englandcrew

alberto2012 wrote: »

Hi all,

As the title says this is my wife and I's 1st mortgage. We have alot of questions regarding our choices but will ask one at a time....

My first question is IF we were to choose a 2 year fixed rate at 3.55%, and the time comes to re-mortgage, Do we have to pay ALL the fees again??
Fees such as :

Arrangement £ 900
Booking £95
Valuation £265
CHAPS £23.50
Lenders / conveyancing £117.50

Total - £ 1581

We would also have to pay an early exit fee ?? more ££'s..

So am I right in asking we are liable to pay all these fees EVERY TIME we re-mortgage??

Thanks for any help...

Im no expert but I shall tell you what I do know and give your post a bump until somebody with more knowledge can help.

You may have to pay some fees again but that is going to depend on the mortgage you chose. The fees would be the arrangment fee and the booking fee, these will vary in amounts. Some mortgages dont have any booking fee

If you change mortgage supplier then you may well have to pay an exit fee to your current provider, again this fee varies. (mine is £160)

SAHD_Jim

When you remortgage, if the deal you want has arrangement/booking fees then you have to pay them. If you stay with the same lender, this is typically all you will pay. If you switch lender then you may have to pay valuation/conveyancing fees etc although sometimes a lender will include these as "part of the deal" (at least that is what happened to me last time). Exit fees depend on the t&cs of your mortgage.


It is always important to weigh up the benefit of a deal with its cost. People who remortgaged 12 months or so ago on the basis that rates were going to go up may well find they are far worse off than if they had simply stuck with a variable rate.