Help with product transfer options

pyrex

Hello! I am remortgaging for the first time and would appreciate some help with our options. We owe £431,000 over the next 33 years and our rate for the first two years was 1.35%. Due to life circumstances, the only option for us now is to stay with the same lender.

These are the available products:

• 2 years at 1.64%; £1,499 product fee
• 3 years at 1.65%; £1,999 product fee
• 5 years at 1.75%; £1,499 product fee

My gut instinct is to go for the 5 year fix. The monthly payments won't be an issue and I don't like the idea of paying product fees so often. Also, I think we will be in the 60% LTV band after five years (I think we are now because we did a big renovation but apparently they only do drive-by valuations; the rate difference is negligible anyway).

Is my reasoning sound? What would you do?

Thanks for your help!

penners324

Which lender?
Most lenders have a wide range of options, lots of them without fees.

samkma

pyrex wrote: »

Hello! I am remortgaging for the first time and would appreciate some help with our options. We owe £431,000 over the next 33 years and our rate for the first two years was 1.35%. Due to life circumstances, the only option for us now is to stay with the same lender.

These are the available products:

• 2 years at 1.64%; £1,499 product fee
• 3 years at 1.65%; £1,999 product fee
• 5 years at 1.75%; £1,499 product fee

My gut instinct is to go for the 5 year fix. The monthly payments won't be an issue and I don't like the idea of paying product fees so often. Also, I think we will be in the 60% LTV band after five years (I think we are now because we did a big renovation but apparently they only do drive-by valuations; the rate difference is negligible anyway).

Is my reasoning sound? What would you do?

Thanks for your help!

I am with Halifax, my fixed term end in Feb 2020, but they let me move to another deal with them without any fees (within last 3 months) So my new payment starts 1st Jan 2020.



When is your current fixed term end?

pyrex

The lender is Halifax. The fixed term ends at the end of this month.

There are some deals without fees but the interest rate is higher and they aren’t worth it.

pyrex

What kind of deal did you get? How long did you fix for? I’m mainly debating whether I should fix for 2 or 5 years. Just two weeks ago Halifax was only offering over 2% for five years.

haras_nosirrah

Halifax is one lender where they offer some different and cheaper rates via brokers. A lot of brokers don't charge for product transfers (I know we don't) so can go through the options and help you come to a decision without charging a fee.

pyrex

Interesting. I am using a broker and the rates they are offering me correspond to those listed on this site.


I will call Halifax and see if they can offer the same deal without the product fee.

haras_nosirrah

They won't the products are the products. There is no negotiation

For a long time until very recently were only offering the higher rate, product fee free version through the branches so on a higher mortgage balance it was a lot cheaper via brokers. Looks like they have changed that.

If you have a broker why are you asking strangers on the internet? A broker should be discussing this and guiding you

pyrex

The broker has guided me to these options. They personally would go with a 2 year deal but says the rates on all the products are very good.



I wanted to see if others on the forum were choosing longer fixes as I was naturally inclined to do.

[Deleted User]

When will you be in a position to move to a better lender?

The Halifax product transfer rates are subbish to be honest, but if you can't move you can't move.

When will you be able to move away from Halifax, fix for that lenght of time

amnblog

Bit puzzled why your Broker is not putting your mind at rest and answering this for you.