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Remortgaging using a Broker - advice

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.)

Comments

  • kingstreet
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • 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
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • 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
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • 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.
  • 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
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    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.
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