Remortgage advice please

GoneWithTheWindFabulous

Hello

I am looking to remortgage to a better rate, currently on Halifax SVR 3.99% and borrow a little more on top.

I found a deal for 2.99 + £995 arrangement fee with another building society for a 5 year fixed rate. Includes standard legals and valuation.

There is a 2nd charge on my property - shared ownership of 30% - I own the rest and have a mortgage on the rest. < 60% LTV - £86,000 mortgage, I would like to borrow total of £90,000

I am starting to doubt whether to go ahead with the 2.99% deal as I am unsure how much solicitors costs will be - they have already quoted £250 to sort out paperwork for the 2nd charge, and need to wait for the shared ownership company to agree which may take some time. Also wondering what other charges I can incur

If I stay with Halifax I think can proceed and change to another product without incurring additional costs. Which seems hassle free at the moment.

Halifax have recently changed their mortgage products, there were no 5 year fixes when I checked but now they have them, and I have seen 3.29% with £995 fee or £3.49 with no fee.

Just wondering what opinions are - especially if you have remortgaged - how much were your costs?

P.S I know its my decision just good to hear other opinions.
Thanks

kingstreet

You are confusing shared ownership and shared equity.

Shared equity sees a second charge over a freehold or leasehold property you own 100% share in. To change lenders, you would need a deed of postponement to prevent the second charge being promoted to a first, or to repay the equity loan in the remortgage process.

Shared ownership you only purchase a part share with the other share retained by a housing association or similar. This is always leasehold. You remortgage only the part of the property you own, but would need a lender willing to accept such business.

As you have noted, it will be easier and cheaper to remain with your existing lender and take a customer retention product, or do a "product transfer" in Halifax jargon.

Ensure you look at the correct options, not remortgage products;-

http://www.halifax.co.uk/mortgages/existing-customers/

GoneWithTheWindFabulous

kingstreet wrote: »

You are confusing shared ownership and shared equity.

Shared equity sees a second charge over a freehold or leasehold property you own 100% share in. To change lenders, you would need a deed of postponement to prevent the second charge being promoted to a first, or to repay the equity loan in the remortgage process.

Shared ownership you only purchase a part share with the other share retained by a housing association or similar. This is always leasehold. You remortgage only the part of the property you own, but would need a lender willing to accept such business.

As you have noted, it will be easier and cheaper to remain with your existing lender and take a customer retention product, or do a "product transfer" in Halifax jargon.

Ensure you look at the correct options, not remortgage products;-

Thanks for your reply, yes after posting realised I had been using wrong terminology.

Also realised I had been looking at wrong options - I would like a 5 year fix, but currently they only do 4 year for existing customers, there is a 5 year for new customers. Do you know whether building societies/banks ever allow existing customers to go onto other deals?

kingstreet

Lenders offer customer retention products on a "take it or leave it" basis. You pick from what's available, stay on SVR or move to a new lender.