Where to get good rates if yr mortgage is ending soon?

Shez

Hi

Im trying to find a lower mortgage rate but as Ive only got around 7/8 years left my current provider wont offer much of a discount.

Am I right in thinking that most other providers will be the same? Can anyone recommend anything? or do I just have to take what little discounted rate I can get?

any help greatly appreciated!

MortgagesInc

I would have thought you could get a good value remortgage with someone, as I assume with that term left you have a very low loan-to-value. Most lenders have a minimum termn of 5 years, so you fit on that score too. Woolwich are good value - at 5.92% with no arrangement, valuation or legal fees, and no redemption penalties

Shez

thanks for that.

Ive just rung abbey but the lowest they can offer me is 7.25 fixed 3yr!!!

Do you really think the Woolwich will give me 5.92%?? I will give them a ring.

herbiesjp

Plenty lenders will be able to agree a mortgage for you

You need to make sure that whatever you go for is suitable for you, and that it offers the flexibility/requirements that you want from it

Shez

I just phoned woolwich and the 5.92 rate has a charge of £995! and payments work out to £354 pm if the fee is added to mortgage or £341 if I paid the £995 fee

- but they did offer a 6.49% fixed 2yr - payments work out at 352.37 pm.

The Abbey quoted 7.14% discounted rate and thats £359. Doesnt seem to be much difference - i thought I would have saved more with the woolwich rate??

The rates ive been getting seem to only reduce my payments by £10-20 pm - I thought it would be more than that?

tigerminxy

Shez, without wishing to state the obvious, it really depends on how much money you're trying to borrow. Intuitively, an interest rate of 30% versus a rate of 1% is huge, but if that applies to £1, the difference in actual terms isn't going to be that much.

I'm guessing from the rates you're getting that you're lucky enough to have a very small mortgage. By all means get the best deal you can, but bear in mind that the savings you'll actually see don't amount to a massive amount.

mountainchrisriver

If you are only borrowing a small amount I would personally go for a fees free lifetime tracker of some description that is flexible enough to overpay if required.

C & G had a lifetime tracker that was available through brokers that was a slightly better deal than the Woolwich... don't know if it is still around though, brokers on here might be able to tell you...

herbiesjp

Indeed a lifetime tracker could be a good option if the mortgage amount is realtively small, it will then save on the re-mortgage costs every 2/3 years - which at £995 arrangement fee could be a good saving.

Don't forget the exit fee to leave Abbey.

Still plenty fee free re-mortgage deals to choose from

Shez

yes i have got £25,000 left and 7 yrs 8 months term left.

So what do you reckon would be the best thing to look at? I dont know anythng about lifetime trackers??

Nelski

Hi Shez:D :wave:

I would ring London and Country if I were you - they are whole of market so can find you the best deal. Like the cheapest rate or the ones with no fees.

Good luck
Nels

herbiesjp

At that mortgage amount, you should steer clear of anything with arrangement fees IMO as it would make re-mortgaging not worth while

The trackers are variable rates, lower than a lenders standard variable rate, which your payments could go up or down. However, as the mortgage is only £25k, any fluctuations in rates will make minimal difference to your mortgage payments.

Unless you are on a tight budget, and cannot afford to see your mortgage payments increase by a certain amount I think this should be the way to go.

Re-mortgage for the last time, and not have to worry about arrangement fees, exit fees any more