help me choose my next deal

splurgegun

My fix is coming ot an end and I don't want to pay a £1500 fee upfront because we could do with putting any spare money towards new soffits and facias (the wooden ones are looking very tatty). For this reason I've removed the fixed offset deals from the list because I won't be overpaying in the next couple of years. I don't think we'll be moving in the next 5 years but things can change quickly wiht jobs and stuff, but i think i'm leaning towards the 2 year fix with £295 fee, added to the loan, to keep the rate reasonable at 1.66% and not to add too much to the loan, Any thoughts?

ec9wrr

Have you spoken to a mortgage broker to make sure these are the best deals available? There’s ,pre to mortgages than just the rate and fee. You need to compare account closing fees and how much capital gets paid off etc etc

getmore4less

How big is the mortgage, could work it out but can't be bothered.

splurgegun

@ ec9wrrHave,

I didn't really want to switch lender, with various fees, conveyancing, etc it could easily add 3 or 4 grand to the loan and I don't want to be doing that every 2 or 3 years

splurgegun

@ getmore4less,

The loan is £156k which is 67% of the value, with 19 years left to run

I'd be interested to hear anyone's reasoning and opinion, ta

ec9wrr

I’ve used free brokers. Never paid conveyancer fees for remortgage (been paid for by new lender). You’ll likely get a better deal not going with existing lender.

ec9wrr

Should have said, valuation normally free as well. Not sure where you’re getting £3/£4K fees. I’ve not paid any other than product fee (which is included in calculations on if you should switch mortgage)

getmore4less

splurgegun wrote: »

@ getmore4less,

The loan is £156k which is 67% of the value, with 19 years left to run

I'd be interested to hear anyone's reasoning and opinion, ta

You can't do the calculations without that information only payment does not tell you anything useful.

Add fees make payment the same see how much is left.

Max you can save is interest only £156 for each drop of 0.1% each year.

2y 1.66% £295. Saves more than the fee, the other lower rates the extra fee cannot be saved with your borrowing.

Most lenders offer decent options on remortgage with low/no extra fees.

splurgegun

Thank for the responses,

How much is a reasonable rate and monthly payment on a £156k 19yr repayment mortgage? Bearing in mind that I have had affordability issues with previous applications being the sole earner in the family and having £6k outstanding on a personal loan and £5k on 0% credit cards. Don't think i can face the stress of another mortgage application fiasco

tia

ec9wrr

Surely depends on if you fix, how long you fix for, what upfront fee you pay or add to the loan.

A broker would be able to give you a good answer. The call will take around 20 minutes and could save you thousands.