what to compare in remortgage deals to find the best deal

user1168934

Feel free to facepalm before answering but I cannot figure out what numbers to compare between various mortgage deals available (for remortgages) in order to find the most suitable deal for me.


I have searched the forum, I have googled and read various articles but can't find this information. I mean do I just compare the overall cost over the entire period of the mortgage or do I compare the payments I will be making over the fixed period. How do I decide if I should stay on the SVR of the current deal after the fixed rate period expires.



To give you some context, my current 5 year fixed is about to expire in about 5 months. I am thinking that may be in about 2 years time I will sell this flat and buy a house.


The decision I am trying to make is:

1. Should I stay on SVR so I can sell (without waiting for the fixed period to end)

2. Should I try to remortgage for another 2 years. I am thinking fixed rate because it is likely the rates will rise. or is it better to get a tracker?


3. How do you compare various deals? which number to compare and over what period (i.e. special offer period or over the entire life of the mortgage)


apologies I don't know much about these things, any help is greatly appreciated.

dimbo61

Well you talk about moving in 2 years so a 5 year fix may not be a good idea.
You know your LTV, lender ( what deals they have for existing mortgage customers )
Credit score etc.
If you plan on moving in 2 years then plan for that.
Rates may rise in the next 2 years so maybe a 2 year fix and overpay every month or save to move UP in 2 years and 6 months so the fixed period has ended.

poppy10_2

MSE has a good comparator here:
https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates

If you tell us the following figures we can tell you which is the better deal:
Your current interest rate
The SVR
What your loan to value is (current mortgage balance divided by the house value)

AnotherJoe

poppy10 wrote: »

MSE has a good comparator here:
https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates

If you tell us the following figures we can tell you which is the better deal:
Your current interest rate
The SVR
What your loan to value is (current mortgage balance divided by the house value)

... any fees to be paid to the lender.

getmore4less

The MSE comparison tool get the wrong answers.

Simplest comparison is add fees make the payments the same and see how much you owe at the end of the period.

Any decent mortgage calculator can do that for you.
Or a simple spreadsheet.

user1168934

thanks guys.
So by the looks of it, I should be looking at the amount I have to pay during the special offer period (likely to be 2 years in my case) and I should be including all fees too.


I have tried all sorts of comparison tools but without knowing what numbers I should be paying attention to they kind of become useless. I was speaking with one colleague after I made the post and he advised that since I plan to move in 2 years time anyway I should pay more attention to the amount paid over 2 years (vs the amount paid over the lifetime).



Here is more info (asked in the post above)


Current mortgage is with Abbey/Santander

current rate = 3.29%
exit fees = £250

SVR = 4.99% (as you can see this is very high so I think it's a no-brainer to remortgage)

LTV = 42.3%


One more question though, I was thinking may be I should go for a 2 year tracker so that if I want to move earlier than 2 years than I will not have any early redemption fees to pay and can simply look for the best deal on the new property. How does that sound?

user1168934

pen_name wrote: »

Why don't you change your deal with Santander, instead of remortgaging to a different lender? Santander should probably be able to offer you a fixed 2-year rate lower than 2%, for your LTV, and you will pay no remortgage fees and don't have to pass affordability checks if you switch to a new deal online. You can switch online if there are less than 4 months left on your current fixed deal, without paying penalties.

santander.co.uk/uk/mortgages/existing-mortgage-customers-changing-deals

Thanks, you are absolutely correct. I have this option in mind but as you have also said they will do it only when there are 4 months or less left. I want to be absolutely prepared by the time I reach the 4 months window i.e. I want to have researched other options and then see what offer I get from Santander and take the deal quickly. Also I think mortgage rates are on the rise so I was thinking it might be a good idea to get an offer to lock the rate - many lenders provide offers that are valid for up to 6 months.