Would you remortgage for a small monthly saving

PiskeyLed

Hi,

My fixed rate is coming to an end soon so I'm trying to decide whether to switch to a new product with my current lender or to remortgage with a new one. I've done my homework and spoken with both my current lender and a whole of market mortgage broker.

The broker was able to find me a deal that would be approx £5 cheaper per month than if I switched to a new product with my existing lender. I would also get £300 cashback, and it is fee free (no legal or valuation costs) apart from a small transfer amount.

I can't decide whether it's worth the upheaval of remortgaging for a relatively small amount (although the £300 would certainly come in handy!). I haven't remortgaged with a new lender for some time and am slightly unsure how involved it's likely to be, and of course there's the credit check to go through (although I'm pretty sure my credit is good, despite dipping into the overdraft by a small amount each month, which is promptly repaid). There'll be no hassle if i stay where i am and it's all been pre-agreed. But perhaps with 'drive by' valuations and lender-arranged solicitors, the process of remortgaging won't be that big a deal?

Anyway, I'd be interested to know what others would do in my position. I'll still be about £50 a month better off if I stick with my current lender but switch products so it's not a bad predicament to be in!

Thanks in advance.

Thrugelmir

What's the exit fee payable on your existing mortgage, i.e. redemption fee?

PiskeyLed

There'll be no exit/redemption fee as I'll be switching at the end of the fixed rate.

Thrugelmir

If you remortgage there will be. Your lender will wish you to cover cover the administration cost of removing their legal charge, i.e. the mortgage. Look at the list of charges that came with your last annual mortgage statement. Likely to be somewhere between £100 and £200.

PiskeyLed

Thanks for the response. I've checked the list of mortgage charges but it says there's no mortgage exit fee when transferring the loan to another lender. Not sure if this is what you meant but I can't see anything else on the list that sounds like this.

getmore4less

without any details of the deals it is not possible to say which is best.

Need the full details of both deals.
Amount,rate,term,payment and net fees(charges less cashbacks).

PiskeyLed

Both are fixed term for 5 years. No fees involved for either (except for £35 transfer fee to new lender if we switched). Current lender rate is 2.24%, new lender rate is 2.09%. New lender cashback is £300 (minus the £35 so essentially £265).

PiskeyLed

Think we're just going to stick with our current provider's change of product as it'll still be a saving each month without the risk and hassle of remortgaging. Will shop around again in five year's time and see if greater savings are to be had then!