Remortgage or go with customer retention deal from Santander

getmore4less

The difference on £100k is going to be around £100.

By taking option 2 any remortgage deal just has to be £100 better than it needed to be to get you to switch lender.

You then have the will rates go up factor

by taking option 1 you fix your loss if you guessed wrong.

with option 2 you have the variable factor which means any remortgage deal has to be even better which makes retention a more likely outcome.

Thrugelmir

JimmyTheWig wrote: »

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...

The answer to which will have to wait.

getmore4less

don't forget the cost/savings difference are related to the term and payment you can't just use the difference in rates.

JimmyTheWig

JimmyTheWig wrote: »

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

getmore4less wrote: »

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

JimmyTheWig wrote: »

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

Phoned them and they'd offer 2.29% fixed for 5 years with no fees.
Which makes it a no-brainer - it looks like I'll get a retention deal from Santander in two years time.

Also, 2 year fix rates this month are lower than last month (I've got 1.79% with no fees) which makes things not as harsh if I do need to go onto SVR for a month.

So I've switched early.

johnathan45

Could you guys please have a look at a similar question I have posed in this thread and help me?

https://forums.moneysavingexpert.com/discussion/5474986