remortgaging + transfer of equity with the same lender

ValHaller

anukis wrote: »

Thank you. I'm not sure how I could take the £8K difference and put them somewhere else? (clearly I've no idea how this remortgage process - or new mortgage? - works).

And if there is any "extra cash" (but where would that come from? as there is no deposit from me), I would make a mortgage overpayment - so perhaps this is what the advisor was suggesting, I could take the higher mortgage to qualify for the better rate and then make an overpayment?

You borrow 224 which pays off the 216 outstanding. 8 comes to you as a cheque. Your deposit is the equity in your home.

Yes, the MA is suggesting paying the 8 back - whether you hold your rate or not, you would need to check. But I would hold the 8 in an ISA - OK 5 is the annual limit - as a very handy emergency fund.

anukis

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Goldiegirl

I think you misunderstood what I said - you'll have to pay the solicitor for the remortgage work and the transfer of equity work.

As far as I can see, the fees for this exercise would be

£995 product fee
£160 Transfer of equity fee to Halifax
£300 to solicitor for remortgage work
£? To the solicitor for the transfer of equity work
£245 for the exit fee for your current mortgage.

So that's the best part of £2000, for £8000 you didn't even know you wanted until you walked into the branch.

When I worked at the Halifax, Transfers of Equity were not popular with mortgage advisors. There's quite a lot of work involved, with very little chance to sell new products. Therefore, it means they don't reach their sales targets.

That's why I feel concerned that the advisor is steering you in the direction of a remortgage, because it'll benefit him. Whether it's beneficial to you, you'll need to decide for yourself, but I'm still not comfortable with this scenario.

anukis

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Dave_Ham

This smacks me of target manipulation by the MA.

Back in the day, if you were with Bank Of Scotland/TMB you could remortgage to the Halifax and the MA would only get credit if there was £5k more brought across.

This may be the same thing when re-mortgaging from old A/ to new 10/ numbers, although I am purely speculating.

Ultimately OP needs to clarify exactly what is on offer and why. Specifically why would Halifax waive an Early Repayment Charge to give a client a better product.

anukis

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Dave_Ham

I am not stating this as a reason not to do it, rather that I am unsure that the £5k additional is not compulsory.

I also do not understand what they are doing and therefore that makes me nervous.

You have paid nothing, so see where it ends up for sure and just keep checking all of the paperwork and asking questions on here.

Was the original mortgage definitely with Halifax and not part of the group, like Bank Of Scotland?

anukis

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anukis

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