Is it worth the hassle of switching mortgage providers for the sake 0.09% difference?

AdventureRocks

I am up for a mortgage renewal and can pay a bit of my mortgage so will only be left with below 50k left. 

I have gone through a mortgage broker who can get me a 1.7% deal with Nationwide or i can stick with TSB who i am with now and it will be 1.79% both on 5 years fee free.
TSB would let me change to the cheaper rate now or i would have to wait to August to port over to Nationwide.

I really do not know what to do! Also not sure if to push it up to the deadline with the current economic situation to see if rates drop any lower?

Seems like a bit off hassle switching over , is it worth it for such a little amount over 5 years?

blue_max_3

Honestly, I wouldn't bother myself on such a relatively small amount.

AnotherJoe

We don't have the numbers here but it seems quite likely that the delay in going to a new lender will also wipe out much of the 0.09% anyway 

silvercar

Less than £45 a year.  Your call!

AdventureRocks

silvercar said:

Less than £45 a year.  Your call!

This is my first time remortgaging is there a lot more involved changing provider rather than sticking with the same one?  

AdventureRocks

If anyone can help me please these are the full facts 



£47k left on mortgage to pay once i make an over payment of 25k.

TSB will not let me move to another provider of make an over payment of more than 10% until 1st August. 

If i stay with TSB they will let me move from 3.14% i am on now down to the 1.79% 5 year fix from 1st July (but can not make the over payment more than 10%.)

Am i best waiting until August to see if the TSB drops a bit? I have a mortgage in principal for Nationwide with advisor for 1.69% (got the rate wrong in original post) with advisor.

amnblog

You could wait until August and if TSB drop to 1.75% you could save £18 a year.
Of course it will cost you £50 extra in July to wait to see if you can possibly save £90 over 5 years.

D.L

AdventureRocks said:

£47k left on mortgage to pay once i make an over payment of 25k.

TSB will not let me move to another provider of make an over payment of more than 10% until 1st August. 

If i stay with TSB they will let me move from 3.14% i am on now down to the 1.79% 5 year fix from 1st July (but can not make the over payment more than 10%.)

Remortgage now with TSB..... 0.09% better rate is about an annual saving of £40 (a little over actually) whilst you will lose more than that by staying on 3.14% for a single additional month.

AdventureRocks said:

Am i best waiting until August to see if the TSB drops a bit? I have a mortgage in principal for Nationwide with advisor for 1.69% (got the rate wrong in original post) with advisor.

Interest rates could increase or decrease. You might be better off waiting, you might be worse off

AdventureRocks

amnblog said:

You could wait until August and if TSB drop to 1.75% you could save £18 a year.
Of course it will cost you £50 extra in July to wait to see if you can possibly save £90 over 5 years.

Thanks for the great breakdown!! 
Only issue i guess is if i stay with TSB and switch now + make the max over payment without incurring a fee i will be paying interest on 65k for the next year as opposed to 47k which would be a costly mistake? 

dimbo61

You will also have to pay the exit fee to leave TSB and there will be other costs along the way even with Free legals.

AdventureRocks

dimbo61 said:

You will also have to pay the exit fee to leave TSB and there will be other costs along the way even with Free legals.

Do you know what the other costs would be?

Advisor said "The deal comes with £500 cashback to offset the cost of a solicitor which I will arrange for you and there’s no arrangement fees whatsoever"

If there is other fees as well i really do not think it is worth the effort