Remortgage time - Does this look a good deal? (Nationwide)

DSM

Hi All,


I'm new to this board and a bit of a novice at this kind of thing however, having read through a few dozen posts in the search, I think I've included enough info.


My 4 year fix @ 4.99% ends with Santander in August so I'm starting to get a feel for what deals are out there and get ahead of the game before they get in touch with their follow up offer.


I've been drawn to a Nationwide deal which is a 5 year fix @ 3.29% with a £99 booking fee. There is no product fee or legal fees as these are included. Pardon my ignorance here but are there any other fees I need to consider?


House is worth around £115,000 (I live in the North:-)) with £60,000 outstanding so roughly speaking 55% LTV though I can get this under 50% with savings if it makes a significant difference.


My monthly payments were around £390 with Santander, however, since I first took out the mortgage, my salary has increased a touch and I can comfortably afford around £500 a month now. Playing around with the calculator if I reduce the term to 12 years this comes to around the £500 figure so that's my plan.


Please can anyone offer any comments on whether this is a competitive deal for my circumstances. It's the best one I have found with my minimal experience. I haven't spoken to a broker yet but do plan to in the next few weeks.


Was just hoping to pitch a marker in the sand so to speak so as not to go in completely blind.


Thanking you in advance.

getmore4less

Keep the term longer and use overpayment, more flexible and a lower contractual payment in case you need the money for something else.

Typhoon2000

Yes if you are the disciplined type, get a mortgage over a longer term that allows overpayments for maximum flexibility.

Thrugelmir

DSM wrote: »

Pardon my ignorance here but are there any other fees I need to consider?

Solicitors fees, valuation fees along with the redemption fee for your current mortgage need to be factored in. Depending on the amount borrowed can outweigh any benefits. At a point it becomes a better option to stay with a lender and simply overpay.

ChopperST

You have a 52% LTV so you can access some of the best deals on the market.

A quick google search reveals you can get a 5 year fix at that LTV with Chelsea BS or HSBC at 2.94% so it may be worth shopping around, bearing in mind this would be a remortgage and involve solicitors fees etc. so always factor that into the cost v what Nationwide have offered you.

DSM

Thanks for your input everyone. I'll knuckle down to research more info regarding the full costs involved as you've kindly explained above. Glad I asked this as I wasn't fully aware of these.


As a side note, I've banked with HSBC for over 20 years so I'll check them out too. They weren't very competitive when I originally took out the mortgage so had dismissed them completely.


Once again, thanks folks.