Mortgage advice please

ralphy1967

A few queries I would like helped with please.


Firstly my mortgage term runs out next month so I am looking to get the best deal, obviously. The issue is that I only want a one year deal because I am selling up and moving in with my girlfriend. So Santander have offered me a tracker but I have to pay a fee of £999!!!


Is it worth me looking elsewhere or are the fees for switching providers normally around that figure or more?


If I wasn't wanting a tracker I could get a fixed mortgage for two years but I would have to pay a penalty of £450 for leaving early, yes it is better than paying £999 but overall is it worth it.


The tracker is 1.49% unfortunately I do not know the fixed percentage but the last two years it was 1.99%


I am very naïve and clueless on this mortgage palaver.


Is it worth leaving and looking elsewhere and if not is it better to pay £999 for the tracker rather than fixed and ending up paying a fee


Thanks in advance


Martin

MovingForwards

How much is their standard rate? It might work out the same if your definitely sell and move in a year.

financegeek

I'm in a similar situation and have switched to Nationwide as they have no set up fees, ERC's and give you £500.00 cashback on completion.

I'm not saying they're the right lender for you, but definitely worth considering other products before you pay the fee!

ralphy1967

Thanks for both replies I will look into both your advices and hopefully come out with a good result. If I do switch would I not be in the same boat where I will have to pay a fee as its only for a year and would other lenders not bother with me as it is only a year that I want a mortgage for

Cheers

Socajam

ralphy1967 wrote: »

A few queries I would like helped with please.

Firstly my mortgage term runs out next month so I am looking to get the best deal, obviously. The issue is that I only want a one year deal because I am selling up and moving in with my girlfriend. So Santander have offered me a tracker but I have to pay a fee of £999!!!

Is it worth me looking elsewhere or are the fees for switching providers normally around that figure or more?
If I wasn't wanting a tracker I could get a fixed mortgage for two years but I would have to pay a penalty of £450 for leaving early, yes it is better than paying £999 but overall is it worth it.

The tracker is 1.49% unfortunately I do not know the fixed percentage but the last two years it was 1.99%

I am very naïve and clueless on this mortgage palaver.

Is it worth leaving and looking elsewhere and if not is it better to pay £999 for the tracker rather than fixed and ending up paying a fee

Thanks in advance
Martin

Does it even make financial sense to remortgage if you are planning on selling up and moving in with your girlfriend next year.
What you need to do is sit down and work out the cost between getting a new fixed rate and non fixed rate.
Also factor in the fee for getting the new fixed rate.
Then add up how much mortgage you will pay for the next 12 months with either rates and see which is more realistic.

aussie_in_wales

As Socajam says is it worth getting a new deal?

Santander's advertised SVR is currently 4.99% however if you call them and speak with them you should be able to get their fololw on rate which is currently 4%

Perhaps do some calculations and see. I'm going with the follow on rate for 5 months as my mortgage had two parts and I want to be able to join them on a fixed rate when the other part runs out. It was an extra £11 per month for those 5 months for me so a total of £55 extra.

KT63

Have you considered securing a mortgage on a rate right now and porting it to a new house?

Verix

I would definitely look in to remortgaging to another lender as many will offer cashback to cover the legal costs of moving. Then you get a tracker with no early repayment charge to pay when you sell up.

That said, from that ERC it looks like your mortgage is potentially quite small so the SVR might not end up costing you a great deal.