Remortgaging with same lender

JillyC8

Hi, I wonder if anyone has any advice on this subject. I've checked my current lender for available deals for when my fixed rate mortgage runs out and the best deal is to stay on exactly the rate I'm on for another two years and pay £999 for the privilege.

I've searched other mortgages online and have found a few a little cheaper, but then I'd have to pay for valuation etc to switch so not sure it's worth it.

I received a better deal last time from my lender to stay with them and hoped there would be a better offer for loyalty etc. Is this normal for borrowing in the present climate?

J



J

kinger101

Consider a longer term fix if you've no immediate plans to move. The slightly higher rate may be better for you than coughing up a grand every 2-3 years.

tlc678910

If there is a higher rate but with no fee that might work out cheaper over the period if your mortgage is fairly small. It might be worth checking if you haven't already.

JillyC8

I owe 96000 over 16 years at 1.69%

Thrugelmir

What options has the mortgage lender offered you?

JillyC8

FIXED:
2 yr 1.69% with £999 fee (sameas current) - £557.08
2 yr 1.89% with £0 fee - £565.93
3 yr 1.99% with £0 fee - £570.38
5 yr 1.99% with £999 fee - £579.35
5 yr 2.19% with £0 fee - £579.35
7 yr 2.59% with £0 fee - £597.96

TRACKER:
2yr 1.44% +0.69% differential £999 fee - £546.15
Lifetime 2.99% +2.24% differential £999 fee - £616.12

JillyC8

Looking at this I think option 2 fixed is the most sensible as it will only cost £187 over the two years and I'd like the option to change again ...

mirv69

I think you need to move lenders to be honest, the charges are awful for 2 year fixed and as has been said before you will keep paying admin charges with them for new products. I recently remortgaged with my current lender with a fee free fixed deal and also had the option of fee free tracker. I would strongly suggest looking elsewhere as some will pay valuation for you. Ref the term, if your not going anywhere soon, a small increase on % may be beneficial to lock in for say 5 years. Trackers are always a great option with rates so low, they usually don't have tie in or penalties and if rates start to creep up you could always lock in to a fixed later.

kingstreet

There are plenty of remortgage products out there. They are the products for people using a new mortgage from a new lender to repay the existing mortgage as opposed to those looking for a customer retention product from their existing lender.

Often, there are fee-free options where there is no valuation fee, no product fee and legal costs are paid for you; or a cashback is provided to defray the costs.

On such a small amount, a fee-free product with a higher rate may offer better value than a lower-rated fee-charging product but you need to establish the full picture of the costs, including the difference in the outstanding balance when the fix ends.

JillyC8

All the deals I’ve looked at seem to be similar and the fee free options have higher interest rates ... so I think long term you end up paying extra anyway ...

JPB123

Those look like Santander rates. Their 5-yr fix for new customers is better than the 2-year fix retention rate