please please Iam in need of help

mvena29

Hi guys
aim looking to remortgage..went to Country wise brooker who shown me two options... (belowe\) but not to sure which one to go with/ Option 1 is great but £995 fee!!:eek::eek::eek:
is it worth to pay it for two yr fix.
or should i rather go with option 2 and use that 995 twards overpayments?

The first one is at around 1.9%, meaning its roughly £502 a month, with free valuation and solicitors, meaning apart from the £150 to Countrywide there are no extra costs for the morgage, however they do have a booking fee of £995 which can be added to the loan. Meaning that it would be adding an extra 995 to save £50 a month so you wont pay off that much equity unless you make over payments.

the second one however is 2.8%, making it roughly £550 a month with free valuation and solicitors, but no booking fee of £995. So there are less costs with this mortage as we wont have that to pay, however with overpayments you will be able to burn through the loan VERY quickly.

is he indicating that option 2 in fact is better?

iam totaly blond confused with baby brain...

Thrugelmir

How would you fund the fee?

mvena29

Hi ya
well... first was thinking of adding it on a top of M but that will make payments of both mortgages equil ...so no point i think...coreect me if iam wro g
ption two i could use my savings.
(Apologise for any misspeling....as english isnt my first language)

Thrugelmir

You've found your own solution. Borrow less. Take option 2.

mvena29

Thanks for replaing :beer:
So ...just to confirm my thinking
Best option would be CW 1.9% and pay £995 from savings (although that would eat all of them)without adding it on .
But to explore all ways..if:
wouldnt use my savings....would u still go with option 1.9 adding it on top or 2.8 option without fee.
Or
Using £ 995 from savings to pay fee with opt 1.9 or pay overpayments in opt 2.8.


Iam absolut rubbish with numbers :-(:-(:-(

haras_nosirrah

£50 a month is £1200 over 24 months. So with option 2 you are paying an extra £1200 to save £1000. Option 2 is £200 more expensive than 1 over the two year period

amnblog

Why don't you ask your broker - who knows your case. It is their job to make a recommendation.

getmore4less

You can ignore adding the fees or paying up front it makes no difference to the way you calculate the relative costs you either have the money or you don't.

Assuming the only difference in costs will be £995 fee.

Add the fee and stick the numbers in a mortgage calculator making the monthly payment the same.

http://www.whatsthecost.com/mortgage.aspx
set to interest only set the term to 2 years and see how much you owe.

Will have to guess the amount borrowed which can be critical to the calculations.

1. 1.9% £502pm
2. 2.7% £550pm
That's a mortgage of around £108300 (22 years) NEED the real number to be more accurate
adding the fees to 1. and setting the payment to £550 on both after two years

1. £100035
2. £100970

Paying the fee is worth it based on that mortgage.


I say again need the real amount borrowed to do the proper calculations.

mvena29

Thank you guys for all answers :-)
Getmore4less ....will get figures shortly....as iam at work:-)

Amanblog.....i did and he says option 2 is better and will burn my mortgage more quicker especialy with overpayments (first post on te top) .
Thats what i couldnt understand.....how higher % will b better

getmore4less

mvena29 wrote: »

Thank you guys for all answers :-)
Getmore4less ....will get figures shortly....as iam at work:-)

Amanblog.....i did and he says option 2 is better and will burn my mortgage more quicker especialy with overpayments (first post on te top) .
Thats what i couldnt understand.....how higher % will b better

I would get him to explain that in detail, perhaps ask how much you will save over 2 years

mvena29

Right got the figures all outstanding is secured 94 +unsecured 14.000
£108.000 with 22 yr and 10mts left. Hous value round £145.
Hope u can help :-)