Mortgage soon up for re-negotiation.

CARRYONFILM12

Hello.

My 5 year fixed deal is up in February.

Particulars-
12k owed
7.5 years to go
current rate 2.8%
Can overpay 10% Haven't though as money has been tight.

On the face of it a strong position but I'd like to squeeze them a bit more-Principality.

From those in the know about these things I'd like to go in well prepared.

I'd love to stay with existing lender as there are no fees involved. At least not last time. Some fees in swapping to another lender could easily be £1000 plus which I can't see making sense.

Any suggestions?

Thanks.

[Deleted User]

With a 12k mortgage I don't think you will have many options to move even if you wanted to. Most lenders have minimums of at least 25k

You would probably be best just staying where you are and running the mortgage down for the last few years.

What deal are you being offered to stay with them?

CARRYONFILM12

Deleted_User wrote: »

With a 12k mortgage I don't think you will have many options to move even if you wanted to. Most lenders have minimums of at least 25k

You would probably be best just staying where you are and running the mortgage down for the last few years.

What deal are you being offered to stay with them?

Thanks.

No doubt you are right. I've only just started getting the process going so as yet no offer.

What I don't want to do is end up on their standard variable rate which I was for far too long.

I know 12k doesn't sound a lot but to me its a fortune.

When I got the 5 year fixed I got a year knocked off the term for less money per month than I was paying before.

Current payment £151 per month.

If I could get even a fiver per month off I would go for it.

Verix

I would 100% look in to this a bit more.

Some lenders do have a minimum loan size of £25k but plenty of others will be able to offer a mortgage on a £12k loan. Your rate isn't really very competitive at all at 2.8% given how little mortgage you have left. If money really is that tight (you mention being able to save a fiver a month would help) I think it's worth considering reviewing the term of the mortgage as well.

There will be some legal work in remortgaging but many lenders will give you a cashback or pay for the legal work themselves.

It can't hurt to speak to a decent broker about your situation.

[Deleted User]

Here is an example for you based on a search on my system for these numbers:

Principaliy currently offers existing customers a 5 year fixed rate of 1.88% with no fees and no financial reassessment

Skipton offer a 1.79% for 5 years with no fees and free legal service


Principality would be £143.06
Skipton would be £142.48

So 58p a month, £34 over 5 years.

If a client came to me with these options i would reduce my fee by £35 to go with the easy option :-)

amnblog

To be candid Verix, any Broker that will manage a remortgage without a Broker fee to earn a £40 procuration fee is a bit of a worry.

CARRYONFILM12

Great stuff.

I have seen some of those deals on London and Country. Posters are giving me valuable leverage tips.

I didn't think 2.8% was that bad but I'm listening. Anything to save a penny. I have noticed that many mortgages carry no charges. Don't know how they make their money.

Thrugelmir

Any indication of what your existing lender may offer you?

Remortgaging to a new lender would incur costs that potentially you may never recover.

Verix

amnblog wrote: »

To be candid Verix, any Broker that will manage a remortgage without a Broker fee to earn a £40 procuration fee is a bit of a worry.

I agree, but the OP wanted to know what was best for their situation.

If someone came in to me with this i'd want to review their situation around insurances as well so I can shop around on home and other insurances. If i can't beat what they've got and it's going to effectively cost me to do the remortgage for them i'd happily tell them which lender to speak with to do it themselves, especially if they're in such a position that saving £5 per month could make a big difference to their life.