Repeatedly remortgaging question - what are the downsides?

BP

Having read [1] about fees I think I understand, but is there any other disadvantage to remortgaging?

For example, looking at [2], there are no product fees and only £90 redemption fee, but a £250 cashback.

If I took this deal, what's stopping me 18 months into the fix period just remortgaging a similar deal elsewhere, or even with a better deal at the same lender[3]!

Is there something preventing me from doing this, or some downside I'm not seeing? It just seems like there are a lot of incentive deals (even vouchers!?) and you could just hope around every few years collecting them.


[1]moneysaving expert.com/mortgages/remortgage-fees
[2]ybs.co.uk/mortg ages/product.html?id=26506
[3]ybs.co.uk/mor tgages/product.html?id=26504

Sorry about the links, forum won't let me post them directly as I'm too new

getmore4less

unknowns are what can get you.

change of circumstances
lender puts up fees and retention rates
...

Thrugelmir

B/P wrote: »

Having read [1] about fees I think I understand, but is there any other disadvantage to remortgaging?

For example, looking at [2], there are no product fees and only £90 redemption fee, but a £250 cashback.

If I took this deal, what's stopping me 18 months into the fix period just remortgaging a similar deal elsewhere, or even with a better deal at the same lender[3]!

Is there something preventing me from doing this, or some downside I'm not seeing? It just seems like there are a lot of incentive deals (even vouchers!?) and you could just hope around every few years collecting them.

[1]moneysaving expert.com/mortgages/remortgage-fees
[2]ybs.co.uk/mortg ages/product.html?id=26506
[3]ybs.co.uk/mor tgages/product.html?id=26504

Sorry about the links, forum won't let me post them directly as I'm too new

Link to (2) doesn't work.

If the product is fixed term. Expect to pay an early repayment charge. If the transfer is effected well before the end of the term.

BP

Surely switching more often would make you less vulnerable to this problem not more?

getmore4less wrote: »

unknowns are what can get you.

change of circumstances
lender puts up fees and retention rates
...

BP

Thrugelmir wrote: »

Link to (2) doesn't work.

Yeah I can't post real links - you'll need to remove the space.

Thrugelmir wrote: »

If the product is fixed term. Expect to pay an early repayment charge. If the transfer is effected well before the end of the term.

OK that's understood - the exit fee would be £90. Assuming that's covered by the £250 cashback, are there any other downsides?

getmore4less

B/P wrote: »

Surely switching more often would make you less vulnerable to this problem not more?

circumstances change so you no longer qualify to change lender.
Your lender is no longer competitive on retention deals.


great lifetime tracker(on a base + 0.95% some are on even better rates) and neither of those ever becomes a problem.

switch every 2 years and you are at a greater risk.

many people have changes in circumstances
job loss/change and kids are two that are not unheard of.

Adrian_Dorr

The early leaving fee is 1% per year remaining. The £90 is some other fee they charge you when paying it all off.
The risk of your circumstances changing and ybs no longer having any at least reasonable deal I'd think was slim, after all they are a building society and shouldn't completely exploit their customers.

Thrugelmir

B/P wrote: »

OK that's understood - the exit fee would be £90. Assuming that's covered by the £250 cashback, are there any other downsides?

After 18 months, 1% of the balance owing. How much lower an interest rate would you expect to remortgage too?