Remortgage..please help?

zain

Hello

I wonder whether anyone can help me…..
I have a northern Rock mortgage of £68116.37 ( just under 21 years left). If I want to switch mortgage there is a redemption charge of £1362.33 ( +£250 discharge of mortgage fee). I think this a 2% charge( next year it will become 1%). I am currently on their SVR which I think is 6.75% (I think!-possibly higher).

My question is, is it worth remortgaging? I could pay a little extra every month – so I am thinking about reducing the term to 15 years. But I would also like a lower interest rate- perhaps a tracker mortgage and the ability to make overpayments.

Is it worth switching products with Northern Rock or should I look elsewhere? Will the charges be less and the process be quicker if i stick with them?
And is there a mortgage I can switch to which doesn’t charge a lot?

Any thoughts greatly appreciated.

herbiesjp

I think your first port of call would be to go to NOrthern Rock and see what scheme they could offer you - make sure that whatever scheme it is does not tie you in beyond any special rate period.

Then armed with that information you could see whether or not adding on the penalty charge to the loan would still work out worthwhile if you went to another lender - there are quite a few that will offer "fee free" or minimal fee re-mortgages.

It boils down to whether it would work in your favour.

zain

Thanks for such prompt responses!
I think the starting point has to be to talk to Northern Rock , i sense there ought to be something slightly better out there. I am prepared to go to £600 a month, but just don't want to pay such a high SVR.
Can anyone suggest any decent tracker remortage deals i should look explore but with little/no penalties?

Michel_Z.

zain wrote:

Thanks for such prompt responses!
I think the starting point has to be to talk to Northern Rock , i sense there ought to be something slightly better out there. I am prepared to go to £600 a month, but just don't want to pay such a high SVR.
Can anyone suggest any decent tracker remortage deals i should look explore but with little/no penalties?

I think Northern Rock should be also able to answer your other questions or give you a good direction!

zain

Thanks ... I'm speaking to NR tonight.
BTW, i have a lot of money 'stoozed' about 40-50k (yes!). Can anyone tell me if this will affect my chances of re-mortaging?
I am due to give some back soon as the 0% deals are running out for me.