Remortgage Advice Please

wackojackouk

Hi guys

Have a mortgage with Abbey at the moment - fixed rate of 4.84 which runs out next month. So looking to get a better deal rather than the standard variable. Been told it will jump £210 :eek:


Anyway been given some figures by friends friend who is a broker and the best they came back with was 5.14% Free valuation, free lender legal fees plus included the £225 exit fee. However there is a £999 booking/product fee with this.

I also have an A&L Premier account so spoke to them and they offered me £4.99 fixed 2 years / £599 booking fee + other fees (valuation/legal etc) £600.

I also read on here that I should contact Abbey who came back with 5.7% and I said that was high so girl comes back on phone with 5.14% but £999 booking fee however no other fees.

I did some sums and work out if I add the booking fee then it works out only £768 over the next 2 years whereas the others are all over £1200 because I will have to pay a £225 exit fee.

Questions......

1 - Should I add the booking fee on OR is it better to pay it now
2 - Is there any chance of some flexibility with the booking fees? - another friend says they did this with another provider

Thanks

WJUK

ps - Can anyone tell me if this is a good deal or not.

MortgageMamma

Whether you should pay booking fee's or not largely depends on the size of your mortgage - i.e. a smaller mortgage often benefits from no or a small booking fee and a higher rate or a larger mortgage a high booking fee and a lower rate - the threshold on thats best is different on each product looked at

The rate that your broker friend mentioned does not seem unreasonable however I am always wary of advising my friends because even after all the years some of them still think they know better than me and that can cause problems!

wackojackouk

Thanks for the info

Our mortgage has £140500 outstanding on it.

The quotes I have are as follows:-

Abbey - 5.14% - £999 Product Fee = £894 pm
Friend - 5.14% - £999 Product Fee = £898 pm (this includes £225 exit fee)

She did say however it can take 4-6 weeks to move and I'm sure the rate changes on 2nd May whereas Abbey (I presume) can switch it straight away so we would save that extra fee.

My main question was really about the whether to or not to pay the product fee and if there was any chance of us negociating on that.

Thanks again

WJUK