Remortgage or switch?

callmechar

Just spoken to my mortgage provider and they have informed me the loan to value based on the house prices index is 71%. I am really happy with this as 3 yrs ago we took a fixed rate on a 90% ltv.

My current fixed rate deal ends at the end of March. We want a five year fix. I want to stay with the Post Office but is it best to go onto a new deal (3.19% until end of 2019) or completely remortgage and get a deal of 2.79% (legal and valuation fees paid by lender).

I am not keen on going through mmr as heard horror stories so is switching a better bet or not?

Repayments for each are as follows:
Switch £825
Remortgage £787

kingstreet

Will you meet the new lender's affordability requirements?

If not, the question appears moot.

callmechar

Thanks.

I'm not really sure what the Post Offices' s affordability criteria is? We earn 50k between us and need to borrow 188k
One dependant.

kingstreet

I thought you were already with Bank Of Ireland?

Are you talking about a remortgage compared with BoI customer retention product, or something different?

Jhoney_2

Sounds like the question is quick retention fix 3.19 vs New MMR app for better rate 2.79 with same bank?

Is that an option borrowers have as it would be good to know.

kingstreet

It's usually customer retention product from existing lender or remortgage to new lender.

Lenders don't normally offer remortgage (products for new borrowers) to those existing borrowers whose deal is coming to an end.

Jhoney_2

Didn't think so, thanks for clarifying.

Just noticed this is a second part of the same thread. (Not sure how to link )

May help context and avoid repetition.

callmechar

Ok thanks. Ok apologies, I thought we could remortgage with same lender. If not, then I guess a new lender or go for the not that good customer retention deal.

What are your thoughts on a 3.19% fix for 5 years please?

callmechar

Is it worth going for the 3.19% 5 year fix and the easiness of just switching or is MMR not that difficult (we have no debts other than the mortgage) and worth going for a better, more competitive rate with a complete remortgage?

callmechar

Can anyone please give me their opinion if a 3.19% 5 yr deal is a good deal? I know I can get better if I completely remortgage but that is a lot of hassle.

The 3.19% deal cos £995. My current deal ends in March. It is currently 4.89% then reverts to 4.49% plus base rate so 4.99% or more if the interest rates rise.