A Little Remortgage Advice needed.

adam918

Hi
Just looking for a little bit of advice from all you knowledgeable folk!

My Santander mortgage has matured returning it to the SVR of 4.74%. I have spoken to them and best deal they can offer is 4.64% fixed 2 yrs.

I believe my house to be valued at 140000 and the outstanding mortgage is 118300(about 18yrs remaining)

Having looked into remortgaging i have established the following figures:
Stay at SVR Repayment mortgage (providing it stays at same rate) over 2 yrs.
£837.70 x 24 = 20104.80

Having looked on comparison sites this seems to be the best deal from Leek BS 2 yr fixed @ 3.19%.
£720.60 x 24 = 17294.40
Set up fees = 995.00
Leaving fees = 225.00
Total = 18514.40 Savings £1590.40!!

So remortgaging seems to be the way forward...

Finally my questions
Firstly do my sums look correct, am i missing any costs on remortgaging?

Second Q, These figures are based on an 18 yr mortgage, if i transferred over to a 25 yr mortgage my monthly figure would be much reduced could i then over pay (say 200 a month) or would that not make a difference?

Hope that makes sense, my mind is currently full of figures and what ifs, any advice would be greatly appreciated.

kind regards

bigadaj

Worth double checking that the mortgage balance will be the same for both at the end of the two year term.

There could be additional fees on the remortgage, legal etc so this needs to be checked.

What is the follow on rate quoted by leek as that is another consideration, you never know what the market and eals will be like in two years.

You could go back to a twenty five year term, use a calculator to check the savings and over payments, deals normally allow ten per cent annually but you would need to confirm. You need to be disciplined with this though, as its not uncommon for people to keep doing this and find that they still have a large mortgage balance when they are older.

Wh05apk

Be careful, on your valuation you are jut on the 85% threshold, if your property is valued at any less then your LTV will be too high, also Leek impose a higher lending charge if you over 75%LTV, which makes their rate uncompetitive, there are better deals out there.

adam918

thanks for the advice, apart from zoopla is their anyway i can check the value of the house? Or is this purely a surveyors decision what its worth?

Regards

surrey_jim

adam918 wrote: »

thanks for the advice, apart from zoopla is their anyway i can check the value of the house? Or is this purely a surveyors decision what its worth?

Regards

Invite an estate agent around giving them the impression you are thinking of selling.

Jim

shortchanged_2

surrey_jim wrote: »

Invite an estate agent around giving them the impression you are thinking of selling.

Jim

Guaranteed to give the OP false hope.