Remortgaging arithmetic

getmore4less

Unless the mortgage gets better cashback on the 123 than just having a 123 then you can ignore it.

Thrugelmir

s88 wrote: »

although the idea would be to switch at no charge after deal ends. If taking NWs £500 cashback, it would be cheapest, but then it would be offset with legal fees, which I'm not sure how much would cost.

Mortgage market is very fickle. Currently highly competitive as there's relatively a low demand with a lot of short term cheap money sloshing about. Hence the abundance of attractive 2 year fixed rates. Two years hence the market could be very different. Base rate could be significantly higher with lenders having to attract more funds from retail depositors. Both of which would put pressure on mortgage lending rates.

getmore4less

Fees added or not makes a tiny difference you can ignore it is the net debt position you do the calculations on which end up the same.

s88

getmore4less wrote: »

What are the fee/no fee rates? ...
Unless the mortgage gets better cashback on the 123 than just having a 123 then you can ignore it.

TSB - 2.09% / 1.69% £995
NW - 1.94 / 1.54 £999
San - 1.99 / 1.59 £999 / 1.39 £1499

Santander is my main account, current monthly DD cashback is £3.36 . Will change into a 123 lite soon.

@Thrugelmir - Advice taken on board. Certainly interesting times ahead, not the best timing for myself, regarding current plans. We could ride out the 2 year fix and use my equity + partners HTB as deposit, but I'm confident the wheels will be set in motion before the end, and porting might not be such a great idea, but I fully understand this is dependent on future markets. Feel as if I'm between a rock and hard place.

Are there any comments towards me increasing my term? I spoke with a mortgage advisor today and he seemed rather dumbfounded that I would rather have the extra cash available to allocate wherever I please and thinks I should focus on reducing term. He also mentioned there would be little saving in taking a product which had a fee (and these are usually better for much higher loans) , contrary to the calculator on here, albeit he was calculating over the full term. FTR - my cash ISA currently has a return of 2.25%, which is where I will be saving into primarily, I already have as many high paying current available to me maxed, except for Santander.

getmore4less

You cannot recover those fees over 2 years with a £50k mortgage.

Small mortgage cheap borrowed money, if you have better uses for the money or can get a better rate why not extend the term.

Easier to overpay if you change your mind than extend the term layer if you need the money

getmore4less

The calculater on here gets the wrong answers.

Wonder how many choose the wrong mortgage product because of that.