Remortgaging costs

lb364

Feel a bit silly asking this but what costs are associated with remortgaging to a new lender?

I’m currently on a tracker rate with Nationwide so keen to fix it before the base rate goes up. I know they show the set-up fees/valuation costs when you apply for each mortgage but are there other costs? I’ve seen mention of paying legal costs, does anyone know how much they would be on average? Anything else to be aware of?

Just trying to decide if to stick with Nationwide which would be easier but presumably more expensive...

Thanks

kingstreet

It varies from lender to lender.

You may pay your own legal fees and get a better rate, or legals might be free, or a cashback provided to cover them.

Current fixed rates are already reflecting what might happen with base rate, so any urgency is probably misplaced at this time.

hugonellie

Nationwide actually reduced their tracker and fixed rates today by up to 0.5% depending on the product

bowlhead99

hugonellie wrote: »

Nationwide actually reduced their tracker and fixed rates today by up to 0.5% depending on the product

Yes, very welcome - and not long since they last reduced them too.

But doesn't mean they wouldn't increase them again if the base rate pops up on Thursday - they're just jockeying for position with their rivals. Certainly a tracker would go up on Thurs if it is BoE base rate plus x% and the base rate goes up. Of course, base rate may not go up on Thurs - and as of the start of this week, the market was projecting that if it did go up on Thurs there would be no more rises at all during 2018.

hugonellie

bowlhead99 wrote: »

Yes, very welcome - and not long since they last reduced them too.

But doesn't mean they wouldn't increase them again if the base rate pops up on Thursday - they're just jockeying for position with their rivals. Certainly a tracker would go up on Thurs if it is BoE base rate plus x% and the base rate goes up. Of course, base rate may not go up on Thurs - and as of the start of this week, the market was projecting that if it did go up on Thurs there would be no more rises at all during 2018.

Of course! I just meant that if the OP wanted to stick with Nationwide and go for a fix, yesterday was a good day to pick one up!

Personally, I'm leaving my tracker with them, its not worth the change as I don't think after Thursday the rates will go up any further, any time soon. Indeed, they could also come back down. By the middle of next year I hope to be in a position where I can fix for five years whilst paying off the rest of my mortgage balance

lb364

Thanks for all the replies. I’ve decided to stick with Nationwide as with the reduction they just made it wasn’t worth paying additional fees to change bank for a smallish saving.

I was tempted to leave it on the tracker but wanted more certainty so have switched but set it to start in February so hopefully we’ll get a couple of cheaper months before it changes.

Off to buy a crystal ball so I can avoid all this in the future :rotfl: