Remortgaging gamble - worth the risk?

Amy56

Hi all:)

Thanks to reading another thread on this board, I'm in a dilemma as to try something similar, but not sure whether I've got the bottle!;)

I'm having an interview with First Direct in a couple of weeks time, to hopefully arrange a remortgage to them. I had it all sorted in my head that I wanted the lifetime tracker of 1.29% above base rate, with an arrangement fee of £950, which I was adding to the loan.

Someone on the other thread, recently remortgaged to FD, and opted for their fee free lifetime tracker of 1.69% above base during the remtg application process, and then once completed, applied for the existing borrower fee free tracker which is 1.29% base (so identical to the one I want).

My question is - would you attempt the same thing? The higher rate is actually no better than what I can get with my existing lender, and my monthly payment would be £25 a month more if I end up 'stuck' with the existing product.

I rang FD and they confirmed it is technically possible to do, but were keen to point out that the rates could change in the meantime (these products have been available since early Feb), which obviously I'm aware of, but I can't decide if it's worth the gamble!;)

Any thoughts are much appreciated

Amy56

Anyone have any thoughts?:)

20vt-rs

Hi Amy, did you do this in the end? I am considering doing the same, but not sure if the 0.5% cheaper product will be around once it's all gone through and even if so, if they'll accept me changing straight away!


I'm currently on 2.29% with HSBC, so initial saving is 0.1%! But with the loyalty product it's 0.5% which makes it cheaper per month and worth doing..


Interested in your outcome.
Thanks..

marathonic

20vt-rs wrote: »

Hi Amy, did you do this in the end? I am considering doing the same, but not sure if the 0.5% cheaper product will be around once it's all gone through and even if so, if they'll accept me changing straight away!


I'm currently on 2.29% with HSBC, so initial saving is 0.1%! But with the loyalty product it's 0.5% which makes it cheaper per month and worth doing..


Interested in your outcome.
Thanks..

I did this back in January. There's no issue with doing it - but you're basically gambling that the rate will still be around by the time your remortgage completes in 6-8 weeks.

In my opinion, it's a gamble worth taking if your mortgage is small (<£100,000). If your mortgage is larger, the fee won't take long to recoup and the gamble becomes more risky.

20vt-rs

marathonic wrote: »

I did this back in January. There's no issue with doing it - but you're basically gambling that the rate will still be around by the time your remortgage completes in 6-8 weeks.

In my opinion, it's a gamble worth taking if your mortgage is small (<£100,000). If your mortgage is larger, the fee won't take long to recoup and the gamble becomes more risky.

That's good news, I've been holding off hoping hsbc will follow suit but their rates aren't so good at the moment. Sod's law says I start to move and then hsbc revise their rates and I could have stayed!!