Questions to be asked - Remortgaging

katie_saver

I am about to remortgage and have been offered a couple of good deals with my current provide (Santander).
What key questions should I ask myself to help me decide? I have already decided to go for a fixed rate mortgage as I like the security this brings. Any help much appreciated! Thanks.

Neutrinno

katie_saver wrote: »

I am about to remortgage and have been offered a couple of good deals with my current provide (Santander).
What key questions should I ask myself to help me decide? I have already decided to go for a fixed rate mortgage as I like the security this brings. Any help much appreciated! Thanks.

The first one is probably how do they compare against the rest of the market?

katie_saver

The ones they have offered me are fixed for 3 years 1.99% no fee
Or 2 years at 1.69% no fee - The 2 year one payments stay the same or 3 year one payments go up by £15 a month.
I'm not keen to add fees to my mortgage.

kingstreet

As suggested, you need to ask yourself how these customer retention products compare to those from remortgaging to a new lender.

katie_saver

They compare very well with the others but I'm tempted to wait until my deal runs out in 5 months time to see what else is out there. I could remortgage for 5 years st 1.99% as well but I'm scared to do that as it's too far ahead.

kingstreet

A remortgage offer typically lasts three months, so you only need to see out two months before applying.

You would simply tell the solicitor handling the transfer when you want to complete to see out any penalty period.

Thrugelmir

katie_saver wrote: »

I could remortgage for 5 years st 1.99% as well but I'm scared to do that as it's too far ahead.

How much would it cost you to remortgage is a another factor to consider.

amnblog

katie_saver wrote: »

They compare very well with the others but I'm tempted to wait until my deal runs out in 5 months time to see what else is out there. I could remortgage for 5 years st 1.99% as well but I'm scared to do that as it's too far ahead.

Classic Santander tactic. Offering you options several months before you can practically dump them and go elsewhere.


2 and 3 years fixes under 2% are all over the market and hardly a big risk Katie.


Todays re-mortgagers are getting the best rates ever offered.

getmore4less

katie_saver wrote: »

The ones they have offered me are fixed for 3 years 1.99% no fee
Or 2 years at 1.69% no fee - The 2 year one payments stay the same or 3 year one payments go up by £15 a month.
I'm not keen to add fees to my mortgage.

why?

If the rate is good enough it will be cheaper over the term of the fix.
There will be a mortgage size where it is worth paying the fee.


you need to look at more than just the payment and fees you also need to look at how much is left it makes a difference.