Remortgage sums help please

DreamCatchMe1

Hi all

Our mortgage fix is now coming to an end so just looking at our options. Would ideally like to stay with NatWest for now. We will be looking to move in about 2 years time so a 2 year fix will be fine. We have 93804 remaining with 55%LTV was at 1.91% our options are...

2 year fix 1.53% with fee 995 to include or pay upfront?
2 year fix 2.25% with no fee

Which am I better doing please?

Thanks

foxy-stoat

Did your adviser not tell you the figures? They need to to give a recommendation surely?

How many years left on your mortgage?

foxy-stoat

https://www.theguardian.com/money/loan-repayment-calculator-interest-rates

Use this calcaulator and plug in your numbers. See what the difference in monthly repayments over 2 years and how much the mortgage will be on month 25.

DreamCatchMe1

Thanks will take a look. We have 23 years left

foxy-stoat

Your probably better off taking the lower interest and paying the fee upfront, but do the sums so you know how much better off you will be.

getmore4less

DreamCatchMe1 wrote: »

Hi all

Our mortgage fix is now coming to an end so just looking at our options. Would ideally like to stay with NatWest for now. We will be looking to move in about 2 years time so a 2 year fix will be fine. We have 93804 remaining with 55%LTV was at 1.91% our options are...

2 year fix 1.53% with fee 995 to include or pay upfront?
2 year fix 2.25% with no fee

Which am I better doing please?

Thanks

for £93,804 on 2y fix with those rates

base sanity calculation calc is £100k*1%*2= £2000

worth checking more accurate max you can save is interest only

£93,804*0.0072*2= £1,351

worth checking for repayment

over 23years
add the fee make the payment the same
£94,799.00 1.53% £435.67 £87,131.86
£93,804.00 2.25% £435.67 £87,432.70

£300 better off paying the fee.

that no fee rate looks high for that LTV are these retention rates from Natwest?

go to a broker they should be able to get 1.4% and 1.82%

£94,799.00 1.40% £416.21 £87,365.16
£93,804.00 1.82% £416.21 £87,113.55

or paying the same as your options

£94,799.00 1.40% £435.67 £86,891.63
£93,804.00 1.82% £435.67 £86,638.10

That could save you at least £500

getmore4less

NATwest is one of the lender that gives brokers better deals and also gives new business better rates than existing.

DreamCatchMe1

Do we then not have to take into account broker fees?

[Deleted User]

DreamCatchMe1 said:

Do we then not have to take into account broker fees?

Depends if they charge a fee or not

getmore4less

You need to account for all fees.

For the comparison it makes a small difference if you add them or pay them up front.

As long as the amounts borrowed reflect the difference and you make the payment the same you get the answer close enough. 

For a simple product transfer the fee should be low/zero anyway
If they can get those rates there is around £500 to cover any extra.