Mortgage - current deal ending.

charlie007

Can someone offer me some advice. We are coming to the end of our current deal with the halifax and spoke with them today. They said they are not able to match a quote I have from tesco for a fixed rTe for 2 years and they would be charging 200 a month for the sample term. I wonder how easy it is to move to another company and all of there is any hands of a retention team calling to match the offer I have. ?

I have. 70/ ltv and owe 215000.

xHannahx

It's fairly easy, but you are likely to incur fees from both Halifax when you leave them and fees and costs from the new lender. You may in fact when factoring in the fees you will end up incurring be better off on a higher rate staying with Halifax.
A better deal isn't always a better deal when all admin costs are added up.

pathtofreedom

http://www.moneysavingexpert.com/mortgages/remortgage-guide

charlie007

Do people generally stay with one company for the life of the mortgage ?

amnblog

charlie007 wrote: »

Do people generally stay with one company for the life of the mortgage ?

Many do - it is what the lender's rely on.


Most posters on here will not be of that mind.

charlie007

I think I can get a much better deal but it just seems like such a huge thing to sort out.

pathtofreedom

It isn't that bad really but it can take some time to sort out all the paperwork side. What you have to be careful of are exit fees, setup fees, valuation fees and solicitor costs etc. Once you factor all those in depending on how you're paying for those the other deal might not be as good.

If you put what your mortgage is now and the rates etc, and the one you're looking at some people will be able to help figure out just how much it saves or not.

It depends as well if you go for a longer fixed deal, which might have a slightly higher rate than a 2 year, but then you're not having to remortage again and pay fee's in 2 years, or go for the longest fix you can find - you can get some 10 year ones, so then you know exactly what your payments and rates will be and don't have to think about changing it again any time soon. That might also be good if you're circumstances might change in the next 5 - 10 years, eg more kids or risk of redundancy or whatever by having a longer fix you're not having to worry about getting stuck on a higher rate and not meeting the criteria to change to someone else later.

If you're really stuck it is worth talking to a mortgage broker who can go through it all a lot more in detail with you about your options and pros / cons of different deals.

getmore4less

charlie007 wrote: »

Do people generally stay with one company for the life of the mortgage ?

Get a decent lifetime tracker never need to change.

Lenders are in the business of lending money they don't care much who and for how long.

Brokers need people changing so have a vested interest in short term deals.

amnblog

getmore4less wrote: »

Get a decent lifetime tracker never need to change.

With that kind of advice I would be out of business in six months.

getmore4less

amnblog wrote: »

With that kind of advice I would be out of business in six months.

Do the analysis and trackers stack up against the other options for those that need to fix. The risk profiles are different and often tracker profile much better for a lot of borrowers.

lee111s

getmore4less wrote: »

Do the analysis and trackers stack up against the other options for those that need to fix. The risk profiles are different and often tracker profile much better for a lot of borrowers.

Perhaps, however a lot of people are risk averse and like to know exactly what they'll be paying for how long. Which is why I suspect far more people are on fixed rate mortgages than those who are on trackers/variable rates.