Remortgage - Current Lender or Switch?

clemmenza

I'm in a bit of a quandary in terms of remortgaging... my current deal ends on May 31st, where the SVR of my current lender shoots up to 5.99%, so I need to get off it!

My current mortgage lender has offered me a new, 2 yr fixed deal at 3.49%, on my outstanding debt of just under £105,000. I have 28 years left on my mortgage, which I have calculated will cost me £489 pm. It also states there will be no fees to pay whatsoever for switching to this new deal when my current one ends.

I have spoken to a mortgage broker, whose best offer he gave to me was a 2 yr fixed in the region of 4.35%, which he told me would cost £542 pm. However, when I told him about the deal offered by my current provider, he said it would cost me more?

Finally, I have found remortgage offers with rates as low as 2.49% fixed for 2 yrs... am I right in thinking that the fees entailed (booking, survey, HLC etc.) would not make it worth my while?

Thanks in advance for any suggestions!

amnblog

Sounds like your broker has failed to give you the confidence that he or she knows what they are doing.

They are best placed to answer these questions as they know your case.

Just because there are rates advertised at 2.49% it does not mean that they are suitable in your case, or that the Lender concerned would lend to you.