Remortgage or go with customer retention deal from Santander

getmore4less

There is also the won't bore you factor.

Retention deals are(for now) pretty much a given so whatever it is wil most likely only impact the remortgage.

The current spread between retention and change lender will be a reasonable estimate for quantifying the won't bore you factor.

JimmyTheWig

getmore4less wrote: »

There is also the won't bore you factor.

Retention deals are(for now) pretty much a given so whatever it is wil most likely only impact the remortgage.

The current spread between retention and change lender will be a reasonable estimate for quantifying the won't bore you factor.

Not sure what you're saying here with the "won't bore you factor".


Yes, I can speak to a local solicitor if no-one here has a ball park figure.
Are there any other costs involved that I've missed?

And how much of a hassle have people found the remortgage process? Have people done it and wished they'd just gone for a retention deal as it was such a lot of effort?

getmore4less

What i am saying unless the cost of not being able to remortgage because that is where best deals will be outways so you won't do whatever it is you plan to do that you don't want to bore us with that will stop you remortgaging you are wasting your time other than learning how to understand comparing options.

fewcloudy

getmore4less wrote: »

What i am saying unless the cost of not being able to remortgage because that is where best deals will be outways so you won't do whatever it is you plan to do that you don't want to bore us with that will stop you remortgaging you are wasting your time other than learning how to understand comparing options.

Did you write that through Google Translate?! Incomprehensible ...


fc

JimmyTheWig

Ok, I'm going to bore you with the details. See if that helps.

Mortgage with Santander is in two parts.
Loan A fix ends September 2016.
Loan B fix ends September 2018.

Loan A is currently fixed at 2.49%.
SVR is currently 4.74%.

Both parts have hefty ERCs, so not worth coming out of either of them early.

I have two options in the here and now.

Option 1.
Arrange a new fixed rate (1.99%) for Loan A next month on a two year fix that will start in September 2016 and end in September 2018.

Option 2.
Arrange a new fixed rate (1.99%) for Loan A now and Santander will let me start it in 14 days with no ERCs and it will end in August 2018.


If I go with Option 1 then I can either get a retention product from Santander in September 2018 or remortgage in September 2018 without paying SVR.

If I go with Option 2 I can get a retention product from Santander in August 2018 and apply this to Loan A in August 2018 and apply the same deal to Loan B in September 2018 without paying SVR on either loan or paying two lots of product fees.
But if I go with Option 2 and want to remortgage then I will need to wait until September 2018 and pay SVR on Loan A for a month.


So, in two years time if I am going to remortgage then I am better off going with Option 1 now (the reduced rate for a few months now doesn't make up for the month at SVR). But if I go for a retention deal with Santander in two years time then I am better off going with Option 2 now.

getmore4less

Need to do it in weeks.

There won't be much in it saving now will be over a longer period at a smaller difference on a bigger amount than the extra costs in 2years.

Without the relevant details no one can work it out.

getmore4less

If the fee based rates are better then the combine option may work out better.

JimmyTheWig

getmore4less wrote: »

If the fee based rates are better then the combine option may work out better.

No chance of combining them before September 2018.
Whatever happens, come September 2018 they will be combined.

getmore4less wrote: »

Need to do it in weeks.

There won't be much in it saving now will be over a longer period at a smaller difference on a bigger amount than the extra costs in 2years.

Are you talking Option 1 then remortgage vs Option 2 then remortgage?
I'm confident that Option 1 then remortgage would be better than Option 2 then remortgage.

Without the relevant details no one can work it out.

Which is why I was hoping for some relevant details (example cost of legal fees, any other fees that I've missed, experience of how much hassle it is) from people who have done it before.

getmore4less

based on 1st sept

You will save approx 0.5% for 10 weeks + the saving over 2years from the overpayments for those 10 weeks dues to reduced payment on the higher rate of both AorB

have you worked that second bit out yet?

Against the 2.75% ish for 4 weeks

JimmyTheWig

getmore4less wrote: »

based on 1st sept

You will save approx 0.5% for 10 weeks + the saving over 2years from the overpayments for those 10 weeks dues to reduced payment on the higher rate of both AorB

have you worked that second bit out yet?

0.5% for 10 weeks is 0.096%.
3% interest for two years on 0.096% overpayment is 0.0058%.
That's 0.102%

Against the 2.75% ish for 4 weeks

That's 0.211%

So Option 1 then remortgage is better than Option 2 then remortgage.
But Option 2 then retention deal is better than Option 1 then retention deal.

Which brings me back to the point of whether I am going to go for a retention deal or a remortgage in two years time...