Remortgage or not??

LJW_2

Hi all, I'm hoping for some advice and hope you can help?

I have stayed in the same mortgage for a while as I'm not really up on how to change, whether it's worth it etc. However I feel now might be the time to learn!!

Basically I had the old Northern Rock mortgage that then changed to NRAM and is a repayment mortgage. I now owe £75000, house is worth about £130000. The interest rate is 4.78 and exit fees £250. I've been told due my age I can now only get a mortgage for 18 years..


Is it worth looking around?? and what kind of mortgage should I be looking at?

Thanks in advance.

nubbins

If you are paying over £400 then you are paying too much, go to money supermarket and put in your figures and you will see for yourself. If you can get one with free legals and valuation you will not have to lay out that much but will probably save yourself a fortune over the next few years

nubbins

I would say you are paying nearly £700 at the moment?

LJW_2

Thanks for your reply. We are paying £521!! Gulp Gulp!!:(

I'll do what you say and sort it quickly!!

nubbins

For that money you could bring your mortgage term down to 13 years if you kept the same payments. Have a look around the comparison sites or get a broker.

Good luck

LJW_2

Hi, I've had a look on money supermarket and can see I can save a lot. However the cheapest fees that I can see is around £1000 for a fixed rate. Would it be cheaper to get a broker?

Thrugelmir

Can you afford to make overpayments on your current mortgage?

nubbins

Have a look around others such as Gocompare and at the top of this page there is a list of best mortgages. For instance Go compare comes up with £408 a month and no fee or using the mortgage comparer at the top of this page there is one for £360 a month and £375 setup. If you are unsure get yourself a fee free broker and they will advise you on the best route. I think you are in a good position and you can either save yourself a good chunk each month or bring your mortgage term down by a good few years.

Oh yes most of the time you can add the fees onto the mortgage

Nationwide BS BOE +1.34% for 2 years


1.84%


2 years


Tracker
3.70% APR


£0.00


After the offer period charging an initial rate of 1.84%, this mortgage will revert to the Standard Variable Rate (SVR), currently at 3.99%.
£408.15


Rate 1.44% For 24 months, then SVR currently 4.99%
Set-up Fees: £375
Monthly Payment £360
MSE Total Cost £4,510 for year 1

Thrugelmir

nubbins wrote: »

I think you are in a good position and you can either save yourself a good chunk each month or bring your mortgage term down by a good few years.

Remortgaging becomes less and less economic as the mortgage balance falls. As the true cost of switching can add up. Mortgage redemption fee, legal fees, product fees and valuation fees can all be encountered. Let alone brokers fees.

So needs careful consideration.

nubbins

Sorry but the OP has clearly stated he/she is paying £521 for a 75k mortgage against a 130k value and is therefore not at that uneconomic stage yet. If for instance you took the N&P mortgage listed on the this website it comes with

Booking fee:£0
Arrangement fee:£345
Valuation fee:£0
Other fees: £30
Cashback:£0

so the only other fee I can see is legals

£161 monthly savings X 24 equals nearly 4k versus his maximum £1000 layout for remortgaging. Like I said a good FEE FREE broker should be able to get them an even better deal.

LJW_2

Thanks Nubbins, the nationwide mortgage you quoted looks a lot better than any I have seen, and the one we have now. I will take your advice and look for a fee free broker, if no success then I may explore your quote

I'm really pleased that I may be able to reduce the years of my mortgage as I'm in a position to over pay :T

Thank you for all advice :beer: