Remortgage - Nationwide Or Yorkshire BS

harshitguptaiitr

Sorry for a naive question, I am a FTB between exchange and completion:

When you do a "product switch", does your LTV gets recalculated? If yes, how?

kingstreet

Keeping_Motivated wrote: »

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.

You need to ask Nationwide about its rates for additional borrowing as you aren't remortgaging as has been mentioned earlier.

The rates for this may be higher.

Keeping_Motivated

Oh I see... Im going to ring them today.

So I want to change products for the 83k I have remaining and then also additionally borrow 50k for the extension.

I hope they do a good deal to keep customers I was hoping to stay with them now but obviously I wont if there are better deals

Thanks

Keeping_Motivated

Ive just had a look at their website for existing customers there is a product switch rate of 1.54% with no fee and and its the same rate for extra borrowing with no fee.

It doesn't mention the £100 cash back so I'll ask about that on the phone

getmore4less

add the fees make the payments the same and see whats left after 2 years is the simplest way to compare 2 deals for financial equality.

Keeping_Motivated

getmore4less wrote: »

add the fees make the payments the same and see whats left after 2 years is the simplest way to compare 2 deals for financial equality.

Thank you

Keeping_Motivated

Been going through the process and figures etc all morning with Nationwide.

I didn't realise the additional borrowing would be a higher rate. So that will be 1.79%.

And I did have a little wobble about coming off the BMR as I will lose the benefits of that but I guess as Ive overpaid and that will then be termed a reserve (on the new deal) I could still use that reserve to pay my mortgage payments if a disaster struck us. I wouldn't want to borrow the money back anyway as I don't want my mortgage to go any higher.