Remortgaging using a Broker - advice

Inotrope

Remortaging from a 3.79% fixed term deal.
Offered 3.49% with £299 fee from the same lender.
House valued at 200k-210k with 118,000ish outstanding. (LTV59%). 18yrs left.
No unusual employment circumstances.

Spoke to a fee-free "whole market" broker, who has offered a variety of fixed rate products, all considerably (1 to 1.8%) cheaper. Arrangement fees from £500-1500. No extra solicitors fees or valuation fees.

I was quite pleased with the rates offered, and the initial legwork the broker has done following a speculative enquiry.

Are there any pitfalls or catches to consider?

(I have read many of the copious postings & guides.)

kingstreet

Have you allowed for the early repayment penalty and deeds release/final/discharge fee charged by your current lender?

3.79% fixed isn't a bad rate. How long left on it?

What's the broker fee?

Inotrope

It's a fee free broker.
The rate ends in January, and we've been offered a 1.99% rate.
There is a £1495 fee.

We have no tie-in / repayment penalty, there is a £140 release fee.

I appreciate that there are no guarantees of being accepted for any product, but of cause the 1.99 thingy sounds good. I do change mortgages after the promotional rate has changed each time.

Thanks for any and all advice!

kingstreet

Who is your current lender and what is the follow-on rate for your current mortgage?

Be careful to check all the documentation to make sure nothing is hidden away, a £350 fee from the lender isn't a lot to get the best service from a broker.

Inotrope

The follow on rate is the providers SVR at 6.14%
They have offered 3.49 with a 299 fee (only has a single fixed rate product).



Not sure what you mean about the fee; are you implying that the lender paying the broker £350 isn't much?

Do brokers where I pay offer anything better? How much do they cost (ballpark)?

What sort of hidden fees should I look for; tie-ins, early releases?
Anything else?

TIA!

GMS

I assume this is an Abbey deal? 7 days only offer?

Rate wise 1.99% can't be beaten. However paying a £1495 fee for a 2 year fix is costing £62 per month to get the rate.

You may find a deal with no arrangement fee at 3% for instance which could save more than you are paying to secure the low rate.

grey_gym_sock

are all these possible deals 2-year fixes? it's surely worth comparing 5-year rates. even if the rates are slightly higher, the cost of the fees is spread over more years.

Inotrope

Those are some good suggestions; in fact I hadn't thought to consider the fees over 24 months.

I feel an urge to create a spreadsheet... (or can someone point me in the direction of one?!)

Conrad

No need for a spread sheet, it's simply enough to compare the maths on deals. I would suggest 3 to 5 years makes more sense, otherwise in 2 years you will face a rate hike and new fees and INTEREIM INTEREST on both mortgages at changeover.

Direct to lender deals are usually better.