Transferring/Porting a Mortgage

kingstreet

With such a small mortgage being required AND having two thirds of that on 2.5%, there's little chance that a deal with high fees is going to beat the combination of £43k @ 2.5% and £17k @ x.

If, for example, the OP takes the extra £17k on Nationwide's 5 year fix at 3.99%, there's only £99 fee.

The keener deals are all aimed at higher borrowers and have fees which make them unattractive to borrowers of smaller amounts.

I know I can't compare like with like as part of the mortgage is variable, but the mortgage (interest + fees) cost over five years is;-

£17k x 3.99% x 5 years = £3,391 + £99 fee = £3,490
£43k x 2.5% x 5 years = £5,375 + £340 valuation fee = £5,715

A total of £9,205.

Compared to HSBC £60k x 2.99% x 5 years = £8,970 + £1,499 fee + £227 valuation fee = £10,696.

That's a £1,491 win for Nationwide and that 2% + base rate guarantee on the £43k is for life, not just for the first five years. After five years with HSBC or Santander, the OP will find his whole mortgage on SVR of around 4% in today's terms, while only £17k will end up like that with Nationwide.

geoffae

kingstreet wrote: »

With such a small mortgage being required AND having two thirds of that on 2.5%, there's little chance that a deal with high fees is going to beat the combination of £43k @ 2.5% and £17k @ x.

If, for example, the OP takes the extra £17k on Nationwide's 5 year fix at 3.99%, there's only £99 fee.

The keener deals are all aimed at higher borrowers and have fees which make them unattractive to borrowers of smaller amounts.

I know I can't compare like with like as part of the mortgage is variable, but the mortgage (interest + fees) cost over five years is;-

£17k x 3.99% x 5 years = £3,391 + £99 fee = £3,490
£43k x 2.5% x 5 years = £5,375 + £340 valuation fee = £5,715

A total of £9,205.

Compared to HSBC £60k x 2.99% x 5 years = £8,970 + £1,499 fee + £227 valuation fee = £10,696.

That's a £1,491 win for Nationwide and that 2% + base rate guarantee on the £43k is for life, not just for the first five years. After five years with HSBC or Santander, the OP will find his whole mortgage on SVR of around 4% in today's terms, while only £17k will end up like that with Nationwide.

So what we should do is to wait for C&G to get back to us, I can only think that the hold up maybe our request for the new mortgage to be in my wife's name only, rather than the joint option which we currently have. There are reasons behind this.......

R_P_W

Just confirm....

Who is your current lender and what rate are you paying?

Who have you applied for a mortgage with?

geoffae

R_P_W wrote: »

Just confirm....

Who is your current lender and what rate are you paying?

Who have you applied for a mortgage with?

Current is C&G Cheltenham & Gloucester and the rate is 2.5%

As yet no one else....waiting to see what C&G offer.....as we require additional funding albeit less than half the current mortgage.

kingstreet

Sorry - I thought I'd read Nationwide somewhere.

Whatever the C&G is offering needs to be compared as I did in my last post.

Thrugelmir

geoffae wrote: »

Current is C&G Cheltenham & Gloucester and the rate is 2.5%

As yet no one else....waiting to see what C&G offer.....as we require additional funding albeit less than half the current mortgage.

C&G is part of the branch network that's being sold to the Co-Op by Lloyds.

Whether the 2% above base mortgage rate will be held indefinately is open to question.