overpay mortgage

adamcarvell

Begsey wrote: »

We went to another lender this year, and the 3 parts are now one.
Went with Nationwide in April, got 1.89% fixed for 3 years. Think it's 2.19% right now.
Nationwide also let us overpay 10% of the original amount every year of the fix. 50k mortgage, could over pay 5k every year.

rang Santander last night they offered us 2.29% fixed for five years . if i looked at others like you did ie nationwide who we have an account with how much did it cost to remortgage change lender ? do you need solicitors etc surveyors and what other costs are involved ?.

AnotherJoe

adamcarvell wrote: »

ok thanks i thought it might be best to pay the overpayment off the largest sum that was all.

It makes no difference because you are saving the interest on the money you pay off, not the total sum.
Owe £100k pay off £5k you've saved the interest on £5k
Owe £20k pay off £5k you've still saved the interest on £5k

Begsey

adamcarvell wrote: »

rang Santander last night they offered us 2.29% fixed for five years . if i looked at others like you did ie nationwide who we have an account with how much did it cost to remortgage change lender ? do you need solicitors etc surveyors and what other costs are involved ?.

They were happy with the valuation I supplied (which was taken from their online valuation tool anyway).
I went with their solicitor, and had to pay them £625. I got £500 cashback though, so it cost £125 all in to change.
There were no arrangement fees.
On the solicitor front, I did call a local solicitor, and they were looking for around £1050. We're in an ex mining area, and they justified their price due to extra searches needing done.

In hindsight, I would have contacted a broker to see if they could have got me a better deal. It's the first time we've had to pay legal fees to remortgage, and I hadn't actually expected it. (my bad, it's in the T&C's)

adamcarvell

Begsey wrote: »

They were happy with the valuation I supplied (which was taken from their online valuation tool anyway).
I went with their solicitor, and had to pay them £625. I got £500 cashback though, so it cost £125 all in to change.
There were no arrangement fees.
On the solicitor front, I did call a local solicitor, and they were looking for around £1050. We're in an ex mining area, and they justified their price due to extra searches needing done.

In hindsight, I would have contacted a broker to see if they could have got me a better deal. It's the first time we've had to pay legal fees to remortgage, and I hadn't actually expected it. (my bad, it's in the T&C's)

umm might not be worth it then switching lender don't want to pay out loads
the five year fix pretty much takes up to the end of our mortgage.

jinkssick

Sorry as a FTB why does this person have 3 mortgages? Wouldnt you just be remortgaging one mortgage each period you want to change?

adamcarvell

jinkssick wrote: »

Sorry as a FTB why does this person have 3 mortgages? Wouldnt you just be remortgaging one mortgage each period you want to change?

i moved house then had a extra lump sum added to add an additional bathroom to the house so that's why its in three parts only one debt though.

nicholbb

Sorry as a FTB why does this person have 3 mortgages? Wouldnt you just be remortgaging one mortgage each period you want to change?

I had multiple sub accounts (for similar reasons to above: original, renovation, ported deal but needed bit more for new deal), I had different end dates and interest rates, OP may as well have one as all the same time and rate.

Big downside for me was waiting for all deals to end before moving provider without a ERC.

One big advantage was I could overpay the highest interest rate on a subaccount but they looked at the whole mortgage value to see if I overpaid 10% for ERC. However, when one of my fixed deals ended so no ERC I could pay off as much as I wanted against that.

I've moved provider and back to one deal and account now.

adamcarvell

nicholbb wrote: »

I had multiple sub accounts (for similar reasons to above: original, renovation, ported deal but needed bit more for new deal), I had different end dates and interest rates, OP may as well have one as all the same time and rate.

Big downside for me was waiting for all deals to end before moving provider without a ERC.

One big advantage was I could overpay the highest interest rate on a subaccount but they looked at the whole mortgage value to see if I overpaid 10% for ERC. However, when one of my fixed deals ended so no ERC I could pay off as much as I wanted against that.

I've moved provider and back to one deal and account now.

mine all end at the same time . paperwork come through today for the five year fix at 2.29% no early repayment charge if stay with Santander if i move the mortgage elsewhere id have to wait until April otherwise its over 2k early repayment charge.

adamcarvell

update i noticed that Santander dropped there rates today so got 2.19% five year fix no fee

adamcarvell

Is the no fee at 2.19% better than the 1.95% with £999 fee for me based on £45000 over 7.7 years left?. I’m struggling to work it out?.