Remortgage - Nationwide Or Yorkshire BS

Keeping_Motivated · 25 September 2017 at 12:57PM

Hi

We are looking to remortgage to pay for an extension. Current mortgage with Nationwide.

We currently have a mortgage of 83k
We would like to borrow 50k
House value at present 260k

I have looked at the Mortgage Best Buy Comparison tool on here and a couple of contenders for 2 year fixes (over 15 years) are:

Yorkshire BS: 0.99% (Fee £1265) paying £795 per month.

Nationwide 1.55% (Fee £20) paying £829 per month.

So Nationwide is overall cheaper over the two years. I am assuming my basic calculations are correct or do I need to take anything else into consideration?

I am also assuming staying with the same bank might make the process simpler?

We are in a good position financially, excellent credit score no other debt etc.

Brighty · 25 September 2017 at 1:37PM

You can't just look at monthly payments plus fees and compare, you also need to consider the balance at the end of the 2 years, the lower the rate, the lower the balance will be. Plug your numbers into a mortgage calculator. You adding the YBS fee to the mortgage?

Keeping_Motivated · 25 September 2017 at 2:18PM

I had a feeling my calculations were too simplistic

Yes we would be adding any fees to the mortgage.

How do I work out the balance at the end of the 2 years? Sorry if this is a stupid question, mortgages and interest rates are not my strong point hence me posting here to learn in more detail whats right for my needs, circumstances and finances.

*Edit to say I have just realised you said try the mortgage calculator so I will go and check that out.

Keeping_Motivated · 25 September 2017 at 2:33PM

Ok so Ive just checked the calculators on here:

The comparison calculator:
Yorkshire BS - £19266.00

Nationwide - £19888.00

So I thought ah so I'm paying less with YBS so that's the best deal BUT

Then I did the Basic Calculator on here and in 2 years I will owe:

YBS - £117489.00
Nationwide - £117017.00

So Nationwide comes out the better deal as I will owe less in 2 years....please correct me if I am wrong as like I said this isn't my strong point

Brighty · 25 September 2017 at 2:41PM

I have an excel calculator i use, but the MSE one will do the job.
By my reckoning, the YBS one comes out cheapest, but only by £145 or so over the 2 years.

Fill in the calculator for both deals, including the 2 different fees, added to the mortgage.
YBS comes out at £802.98 a month, so £19271 total with remaining balance of £117493
NW comes out at £828.71 a month, so £19889.04 total with remaining balance of £117018
So YBS means you'll pay £618 less in montyhlu payments, but you end up with a balance that is £475 higher, so only £143 better off over all

Keeping_Motivated · 25 September 2017 at 2:47PM

Thank you that's appreciated

I had a feeling I would be going wrong somewhere!

I have been happy with Nationwide so the fact YBS is only £145 cheaper I think I may plump for Nationwide as it may be easier to stay with the same lender...

Keeping_Motivated · 25 September 2017 at 2:51PM

Just so I can have all the information to hand when I ring Nationwide tomorrow can anyone who has recently remortgaged give me a rough idea of the info I should have ready for the call?

I assume list of outgoings and incoming figures obviously but will there be anything else I need to hand?

dimbo61 · 25 September 2017 at 5:06PM

Can you check your credit file with the 3 big credit companies ?
Who compiles credit reports?

In the UK, companies called ‘credit reference agencies’ (CRAs) compile information on how well you manage credit and make your payments.

The three main CRAs are:

Experian
Equifax
Callcredit

After you take into account costs to move lenders I am sure that Nationwide will work out cheaper and maybe easier to deal with as you have HISTORY with them !

Keeping_Motivated · 25 September 2017 at 6:38PM

You think I should check my credit file on all 3 of them before I apply?

blues · 25 September 2017 at 6:48PM

Nationwide are offering £100 to current mortgage customers who remortgage with them, so something else to consider.

RichyRich · 25 September 2017 at 8:44PM

If your mortgage is currently with Nationwide, moving to a new Nationwide deal is not a remortgage it is a product switch. Should be no solicitors 'fees, valuers' fees, etc which could easily wipe out tge £145 saving over the introductory term, especially given the Nationwide £100 loyalty bonus. We did a Nationwide product switch earlier this year and it was dead easy...far more so than a remortgage.