Am I getting my pants pulled down? Jump ship or stay put?

beezysoldier

Good Evening
My mortgage is due to expire at the end of this year which is a two year fixed rate.
I am currently with Natwest and have a remaining mortgage of £176k which is split into two pots. Pot 1 and Pot 2. Both pots have an interest rate of 2.09%.
Remaining term of my mortgage is 15 years 8 months and pay roughly £1099 a month to Natwest. My current loan to value with natwest is 65%. If I am honest they value my property at 266k and I am confident I can sell at 295 or 300k so the bank are about 30k out and ideally my loan to value should be around 60%. I have asked an independent estate agent to value my property on Tuesday which will also help my case how much my place is worth if we go down the re evaluation root.
My main ambition is to look for a 5 year fixed mortgage pay off my mortgage as soon as possible but only over paying upto 10% a year of my mortgage which I understand I get without charges with Natwest and most banks. Then in the meantime save some dosh and when the five year mortgage is up look for a mortgage with no ERC and pay a lump off with the money save from the passed 5 years.
Here are my options...
Current Provider renewal options
Natwest
5 year fixed rate - 1.72%
Product fee - £995.00.
Early repayment charge 

5.0% until 31-03-2022

4.0% until 31-03-2023

3.0% until 31-03-2024

2.0% until 31-03-2025

1.0% until 31-03-2026

Overpayment ?  10% of outstanding mortgage balance each year without extra charge

Pot Acc 1

£167.20

Pot Acc 2 

£902.75
Total - £1069.95 per month, same 15 year term

Natwest
5 year fixed rate - 2.16%
Product fee - £0.00

Early repayment charge ?  

5.0% until 31-03-2022

4.0% until 31-03-2023

3.0% until 31-03-2024

2.0% until 31-03-2025

1.0% until 31-03-2026

 Overpayment ?  10% of outstanding mortgage balance each year without extra charge

Sub Acc 1

£172.78

Sub Acc 2 

£932.90
Total - £1105.68 per month, same 15 year term
Switching to a new provider 
Virgin Money
5 year fixed rate - 1.39%
Set-up Fees - £1,525

Overpayments allowed?

Yes

Early repayment charge:

£50, plus (3.5% until 01-03-26)

Exit fee:	£50
Maximum LTV	65%

Monthly Payment - £1,085 For 63 months
Virgin Money
5 year fixed rate - 1.45%
Set-up Fees - £1,025

Overpayments allowed?

Yes

Early repayment charge:

£50, plus (3.5% until 01-03-26)

Exit fee:	£50
Maximum LTV	65%

Monthly Payment - £1,090 For 63 months
Coventry building society
5 year fixed rate - 1.49%
Set-up Fees £1,007

Overpayments allowed?

Yes

Early repayment charge:

£125, plus (5% until 31-12-21, 3% until 31-12-23, 1% until 31-12-25)

Exit fee:	£125
Maximum LTV	65%

Monthly Payment - £1,093 For 61 months
Santander
5 year fixed rate - 1.55%
Set-up Fees - £1,284 Cashback: Up to £250

Overpayments allowed?

Yes

Early repayment charge:

£200, plus 5% until 02-01-23, 5% until 02-03-26, plus Benefit repayable until 2-1-2023

Exit fee:	£225
Maximum LTV	75%

Monthly Payment - £1,098For 63 months

My maths is not my strong point and would really appreciate some advice what you would do in this scenario and the best route to take to be financially better off as its a big commitment which I want to get right and at least the very best deal for peace of mind for the next 5 years.
Thank you and really appreciate your thoughts on this.
Dave

ACG

Too many numbers there, but one big thing is if you were to stick with natwest, could you not move both products to the 1.72% rate and only pay one arrangement fee ?

Ultimately you are rarely going to get a market leading rate by staying put, but it is normally a decent enough deal to make you think about the cost/hassle argument. 

Only you can decide if it is worth the hassle of switching products. I did an application for some long standing customers of ours with Platform about 13 weeks ago. After 8 weeks the customers asked me to call it a day and just do a product switch with the current lender (funnily enough the current lender was natwest). Admittedly the lender we applied to were absolutely shocking and after we submitted the application they were getting grief for being slow with every application. 

beezysoldier

ACG said:

Too many numbers there, but one big thing is if you were to stick with natwest, could you not move both products to the 1.72% rate and only pay one arrangement fee ?

Ultimately you are rarely going to get a market leading rate by staying put, but it is normally a decent enough deal to make you think about the cost/hassle argument. 

Only you can decide if it is worth the hassle of switching products. I did an application for some long standing customers of ours with Platform about 13 weeks ago. After 8 weeks the customers asked me to call it a day and just do a product switch with the current lender (funnily enough the current lender was natwest). Admittedly the lender we applied to were absolutely shocking and after we submitted the application they were getting grief for being slow with every application. 

Thanks ACG. Yes I can stick with Natwest and get the 1.72 and pay the arrangement fee which is the easiest move to make for the next five years. Completely agree with you staying put will never be the best rates. Always better rates jumping ship comparing the market but its the time and hassle aspect of it. I want peace of mind for the next 5 years. I usually go with a 2 year normally. And I can only see rates going up for the foreseable future? 

getmore4less

Natwest not a great lender for retentions also look at their rates as your mortgage gets smaller. 

MFWannabe

beezysoldier said:

ACG said:

Too many numbers there, but one big thing is if you were to stick with natwest, could you not move both products to the 1.72% rate and only pay one arrangement fee ?

Ultimately you are rarely going to get a market leading rate by staying put, but it is normally a decent enough deal to make you think about the cost/hassle argument. 

Only you can decide if it is worth the hassle of switching products. I did an application for some long standing customers of ours with Platform about 13 weeks ago. After 8 weeks the customers asked me to call it a day and just do a product switch with the current lender (funnily enough the current lender was natwest). Admittedly the lender we applied to were absolutely shocking and after we submitted the application they were getting grief for being slow with every application. 

Thanks ACG. Yes I can stick with Natwest and get the 1.72 and pay the arrangement fee which is the easiest move to make for the next five years. Completely agree with you staying put will never be the best rates. Always better rates jumping ship comparing the market but its the time and hassle aspect of it. I want peace of mind for the next 5 years. I usually go with a 2 year normally. And I can only see rates going up for the foreseable future? 

If you don’t want the time and hassle of it all but do want to get the best deal for a 5 year fix why not use a broker? 
Well worth it IMO as they do all the hard work; searching etc 

beezysoldier

MFWannabe said:

beezysoldier said:

ACG said:

Too many numbers there, but one big thing is if you were to stick with natwest, could you not move both products to the 1.72% rate and only pay one arrangement fee ?

Ultimately you are rarely going to get a market leading rate by staying put, but it is normally a decent enough deal to make you think about the cost/hassle argument. 

Only you can decide if it is worth the hassle of switching products. I did an application for some long standing customers of ours with Platform about 13 weeks ago. After 8 weeks the customers asked me to call it a day and just do a product switch with the current lender (funnily enough the current lender was natwest). Admittedly the lender we applied to were absolutely shocking and after we submitted the application they were getting grief for being slow with every application. 

Thanks ACG. Yes I can stick with Natwest and get the 1.72 and pay the arrangement fee which is the easiest move to make for the next five years. Completely agree with you staying put will never be the best rates. Always better rates jumping ship comparing the market but its the time and hassle aspect of it. I want peace of mind for the next 5 years. I usually go with a 2 year normally. And I can only see rates going up for the foreseable future? 

If you don’t want the time and hassle of it all but do want to get the best deal for a 5 year fix why not use a broker? 
Well worth it IMO as they do all the hard work; searching etc 

MFWannabe do you recommend any good brokers? 

MFWannabe

There are brokers on this forum, it’s in their signatures 
They are not allowed to contact you directly but you can message them

MFWannabe

There’s also a guide on this website: https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/