Nationwide Cashback vs Free Legal Fees

Darwood

Nationwide are currently offering free £500 cashback or free legal fees when you switch/remortgage with them. According to https://www.nationwide.co.uk/products/mortgages/service/terms-and-conditions#xtab:twistycontent7_freelegals "Standard legal work is worth around £200 depending on your circumstances." does that mean I would be about £300 better off with the £500 cashback then or am I missing something? It should be a straightforward switch AFAIK. It is a standard 1990s semi-detached house and I am currently on a lifetime tracker with HSBC with no ERC or exit fees etc. If I take the cashback would I then have to instruct my own solicitor?

I also have the option to switch rates with HSBC with no fees etc for an equitable deal but would I then be missing out on ~£300 cashback?

RichyRich

Good luck finding a solicitor who can do the conveyancing for you for less than £500. On the other hand, a good solicitor is worth his or her weight in gold, and the free conveyancer that the lender assigns you is likely to be a production line style place. You pays your money and takes your choice.

Personally? For peace of mind, if you know or have had recommended a good solicitor, I'd take the cashback and instruct my own, even if it ends up costing a few hundred pounds more.

Darwood

RichyRich wrote: »

Good luck finding a solicitor who can do the conveyancing for you for less than £500. On the other hand, a good solicitor is worth his or her weight in gold, and the free conveyancer that the lender assigns you is likely to be a production line style place. You pays your money and takes your choice.

Personally? For peace of mind, if you know or have had recommended a good solicitor, I'd take the cashback and instruct my own, even if it ends up costing a few hundred pounds more.

Thanks RichyRich, if I understand you correctly I'm likely to burn up the cashback in conveyancing fees in which case I might as well stick with HSBC and switch rates/product with them.

I don't have a good solicitor lined up or recommended. Whenever I have used a local one I always find you have to keep hassling them to get anything done. Why do I need a good solicitor for a remortgage though anyway? I can't see what risks there are for me. When I remortgaged years ago I think I just used the one assigned by HSBC.

getmore4less

What term, size of mortgage and rates are on offer?


Don't forget the exit fees.

dimbo61

When you change lenders there are fees to pay.
An exit fee from your current lender, searches and survey costs plus legal fees.
If you think £500 would cover this Good Luck.
However if you save Thousands of pounds in Interest payments by getting a much better deal from another lender then it would be worth the cost and hassle of moving lender.
If you want to post the size of the outstanding mortgage, term left, interest rate of the offer from Nationwide and retention deals from HSBC we can work out if it's worth moving lenders.

Darwood

dimbo61 wrote: »

If you want to post the size of the outstanding mortgage, term left, interest rate of the offer from Nationwide and retention deals from HSBC we can work out if it's worth moving lenders.

Wow, thanks.

Mortgate: £72,000 left over 20 years, LTV 55.38%

HSBC (current lender):
3 Year Fixed at 2.05%
no fees

Nationwide:
3 Year Fixed at 2.04%
no fees
£500 cashback or free legal fees

chunkytfg

Darwood wrote: »

Wow, thanks.

Mortgate: £72,000 left over 20 years, LTV 55.38%

HSBC (current lender):
3 Year Fixed at 2.05%
no fees

Nationwide:
3 Year Fixed at 2.04%
no fees
£500 cashback or free legal fees

HSBC are showing on there website 2.05% fee free fixed for 3 years.

Would it not be simpler just to transfer within the same bank onto a mother fixed rate. no fee, no searches and way simpler. Forget about the £500.

Darwood

chunkytfg wrote: »

HSBC are showing on there website 2.05% fee free fixed for 3 years.

Yeah that's what I said.

chunkytfg wrote: »

Would it not be simpler just to transfer within the same bank onto a mother fixed rate. no fee, no searches and way simpler. Forget about the £500.

That was kind of my question. So you're saying the £500 isn't worth the risk/hassle then.

getmore4less

Whats your tracker rate

Darwood

getmore4less wrote: »

Whats your tracker rate

Base rate + 2.39%, currently 3.14%. I reckon I can save about £50 per month by switching to a fixed rate at the moment.