Remortgage constantly to save money?

Spinky77

Hi there

First time poster so apologies if this is a repeat discussion (I have had a thorough search).

I have got a Mortgage in Principle from my bank, HSBC. It's a 2 year fixed at 3.89%, changing to their variable rate which is pretty good at the moment at 3.94% (of course this may change but for the purpose of this question I'm anticipating it won't too much). There are no arrangement fees.

My question is this. I have had a search using various tools and with the same deposit can get a much lower initial fixed rate. However the variable jumps up dramatically. Do I go for the company with a lower initial rate then hafter 2 years jump ship to HSBC (is it that easy?) or am I able to go to another low fixed rate?

If fixed term rates are generally lower than the variable rate why don't people remortgage constantly? (With no/low arrangement fees). Is there some drawback to this I'm missing?

For convenience sake I would like to stay with HSBC for the long run but considering this is the most money I will ever borrow, I think I need to ignore convenience and go for the cheapest option. But do I do this time and time again - is there a limit to how many times one can remortgage!?

Hope I have actually asked a question you can understand, there are. Few in there. Thanks so much

laura_louise

I don't think you have to necessarily re-mortgage constantly, from what i've seen it's easier to simply get a new fixed term from your current provider on a customer retention deal. That is what i'm planning to do anyway.

Spinky77

Okay that sounds much nicer than remortgaging. So are you planning on doing this long ter, and constantly being on a fixed rate?

getmore4less

there is always the life time low cost tracker never have to change again.

you never know what the fee free deals will be next time.

change in circumstances and stuck on a follow on.

Thrugelmir

Spinky77 wrote: »

If fixed term rates are generally lower than the variable rate why don't people remortgage constantly? (With no/low arrangement fees). Is there some drawback to this I'm missing?

Remortgaging to another lender is not cost free that's something you've overlooked.

Fixed rates aren't always lower than variable rates. Some borrowers with Nationwide and Lloyds pay 2% above bank base on a variable rate.

nuzik

Thrugelmir wrote: »

Remortgaging to another lender is not cost free that's something you've overlooked.

Fixed rates aren't always lower than variable rates. Some borrowers with Nationwide and Lloyds pay 2% above bank base on a variable rate.

thats not true thats an old product and not available to new customers.

When looking to move from one lender to another see if they offer free legal fees and valuations some will. If they don't bare that in mind when moving and add that to the cost.

Some lenders offer better retention deals for their existing customer and its usually fairly easy to just switch product to another with the existing lender rather than moving.