Remortgage or go with customer retention deal from Santander

JimmyTheWig

A bit of a "how long is a piece of string" one, but would be interested in opinions.

In two years time we'll be in a position where we have the option of remortgaging or getting a retention deal from Santander.
I could do with knowing now which is likely to be worthwhile.
[I could go into details, but don't want to bore anyone!]

Would be looking at a loan of around £170k.
50% LTV.
Five year (approx) fixed rate.

I've never remortgaged before, so don't really know what sort of costs are typically involved. And how much hassle is involved.


Anyone have any gut feeling if remortgaging would be worthwhile?

AnotherJoe

JimmyTheWig wrote: »

A bit of a "how long is a piece of string" one, but would be interested in opinions.

In two years time we'll be in a position where we have the option of remortgaging or getting a retention deal from Santander.
I could do with knowing now which is likely to be worthwhile.
[I could go into details, but don't want to bore anyone!]

Would be looking at a loan of around £170k.
50% LTV.
Five year (approx) fixed rate.

I've never remortgaged before, so don't really know what sort of costs are typically involved. And how much hassle is involved.


Anyone have any gut feeling if remortgaging would be worthwhile?

This person will


No one else will, not for your personal circumstances and especially not for two years time

getmore4less

Until you have the rates and fees it is a stab in the dark.

Also it changes overtime as the rates and fee structures change.

With £170k the fee based deals for a lower rate will be in the mix.

Convenience is also a factor.

why not do a what if on today's rates fees and see what sort of differences you get, that's a good a guide as any.

edit:
also forgot to say the best remortgage may not be the best long term, idealy you also factor in the next change and move towards a lender that may have a decent enough retention deal to avoid the change next time.

Another alternative is to look for a good lifetime tracker and potentially eliminate the need to change again unless you need more money or move.

JimmyTheWig

getmore4less wrote: »

Convenience is also a factor.

why not do a what if on today's rates fees and see what sort of differences you get, that's a good a guide as any.

According to MSE, the best remortgage for me would be Tesco.
2.24% fixed for 60 months.
£195 Application fee
£0 Product fee
£0 Valuation fee
£25 Other fees
£0 Cashback

£90 Exit fee
Free Legals? No

I'm adding the Tesco Exit fee to the costs of remortgaging. [I know I won't pay this now. I'll pay the Santander exit fee now. But I'll have to pay the Santander Exit fee at some point anyway. But if I don't remortgage I'll never have to pay the Tesco Exit fee. So I'm adding it to my calculation now.]
So that's £310 in fees.
But does "Free Legals? No" mean I'll have to pay legal fees? How much are these likely to be? Have people who have remortgaged got a rough idea?


I agree with your "Convenience is also a factor." comment. So, again, I'd be interested in opinions. Again, people who have done it may have an idea.

getmore4less

What's the retention deal you need something to compare against.

getmore4less

Do not trust the MSE they get the calculations wrong on things so you can never be sure.

AnotherJoe

JimmyTheWig wrote: »

According to MSE, the best remortgage for me would be Tesco.

So what? Even if that's correct, which it may not be because (a) its just wrong or (b) they wont loan to you, it almost certainly wont be in two years time.

You are getting ahead of yourself by at least 18 months.

JimmyTheWig

getmore4less wrote: »

What's the retention deal you need something to compare against.

I can find that out when I phone them later.
But for now lets say 2.49% fixed for 5 years with no fees.

JimmyTheWig

AnotherJoe wrote: »

So what? Even if that's correct, which it may not be because (a) its just wrong or (b) they wont loan to you, it almost certainly wont be in two years time.

You are getting ahead of yourself by at least 18 months.

I'm just using it as an example to know what I might want to do in two years time.
As I said earlier, I can bore you with the details of why I want to know if you want.

getmore4less

Add the fees make the monthly payment the same see how much you owe in 5years(lower is better)

Don't fall into the pay the fees up saves money trap.

Thrugelmir

Give a solicitor a call and obtain a quote. Won't change much over the next couple of years.