Remortgaging Advice

calumtaggart1993

Hi,

We are currently 3 years into a 5yr fixed mortgage with Nationwide.

Here are the facts:
Property Purchase Price 2016 - £187,000
Property Value January 2019 - £205,000
Balance on Mortgage - £150,000
Current Interest Rate - 3.29%
Current length on mortgage - 19 years.
Current Monthly Payment - £896
Cost to leave mortgage now - £3000

We are looking to remortgage to drop our interest rate down to save money but are unsure if it is worth it. As current rates for a 3yr fix with nationwide are around 2.3%.

We would like some advice/help as we would like to do 1 of 2 things in addition to dropping the interest rate.
1. Borrow an extra £15,000 on our mortgage and continue payments over a 19 year term
2. Pay the £3000 fee to remortgage and then adjust our term to allow short term saving over the next few years. By simply taking another 19 year term on a new 5 year fix it would could £3000 and payments would adjust to £804/month. £6000 saving in comparison for a £3000 outlay.

enthusiasticsaver

You cannot really say you are saving £6000 as you don't know what rate you would get in 2 years time when you can remortgage without paying £3000 as an early redemption penalty. Presumably you will put the £3000 on your mortgage therefore increasing your balance which means that the saving over 2 years will not even cover the ERC. It does not look like you will save anything. Put the costs into a mortgage calculator.

Generally you get the best mortgage rates by having low LTV mortgages. If you increase the mortgage by the ERC let alone the proposed extra £15k you will be upping the LTV percentage.

getmore4less

Simple calc £150k @ 1% 2years £3k saving on current borrowing over the 2 years left

Break even at best as it will be lower on repayment.

Do you need £15k now what would a top up loan rate be.

JoT1974

Hi
Can anyone offer advice on my remortgage.....
I am in the middle of re-mortgaging my property with Scottish Widows, this has been ongoing since late November 2018. They have been dragging their heel and have just sent me a new offer and the interest rate has increased.
I wanted to borrow 98k as thats what is left on my mortgage with the Halifax but after the Scottish widows fee of 2k I now need 100k. The new revised offer has increased my monthly payment from £500 to £574. I have paid for a 'drive by' valuation of £120. In addition I have paid a mortgage adviser 1K to sort it out and speed up the process. However I've just completed a search on MSE and Skipton BS monthly payment is £525 for a 5 year fixed product. I really need to remortgage asap but I feel Scottish Widows have taken me for a ride. They dont even come up on re -mortgage search now with MSE when 2 months ago they were the cheapest. Does anyone know why this is and should I consider remortgaging with another lender and pay another valuation fee??. Personally I feel really let down and ripped off by mortgage adviser and is there anything I can do about this?
Any suggestions would be appreciated.