Remortgaging through compare site

Solenoid

Me and my partner looked couple of compare sites on Internet to remortgage. Found a good deal from comparethemarket. I clicked on to continue but it took me to London&country brokers. Do I go through brokers? Whats the recommendation here? Thanks

K_S

@Solenoid If you're looking to change lenders then generally speaking you have 3 options -

1. Use a broker for an advised remortgage.

2. Go direct to a lender for an advised remortgage.

3. Go direct to a lender for an execution-only remortgage. Only a minority of lenders will have this option, usually delivered online.

I would always recommend using a broker, but then I would say that wouldn't I

Solenoid

K_S said:

@Solenoid If you're looking to change lenders then generally speaking you have 3 options -

1. Use a broker for an advised remortgage.

2. Go direct to a lender for an advised remortgage.

3. Go direct to a lender for an execution-only remortgage. Only a minority of lenders will have this option, usually delivered online.

I would always recommend using a broker, but then I would say that wouldn't I

Thank you KS we were going with product switch with coop but they lost our documents 2 times now. So I said I am not sending another copy of what they wanted to see. Thats why looked different lenders. I thought it works like changing my car insurence provider. It seems totally different 😂

getmore4less

Don't forget a lot of the comparisons sites don't do the math properly so can get it wrong.

(especially if you plan to overpay)


there is a 4th option.


You post the deal you think is the best and maybe second best here.

Along with details of what you are looking for, amount, LTV being critical along with planned payments and term you want to fix for.

Then someone can see if you are close of anything better

Solenoid

getmore4less said:

Don't forget a lot of the comparisons sites don't do the math properly so can get it wrong.

(especially if you plan to overpay)


there is a 4th option.


You post the deal you think is the best and maybe second best here.

Along with details of what you are looking for, amount, LTV being critical along with planned payments and term you want to fix for.

Then someone can see if you are close of anything better

Thank you. House worth £200000 and mortgage left to pay £67000. So LTV 33%. We pay currently £540 every month and there is 13 years 7 months left. We are ok to pay the same amount if paying it off early. We could over pay now and again too. I looked at barclays I think interest was 2.2% with similar monthly payment but decreased to 12 years mortgage with 10 years fixed.

lonibra

If your preference is to avoid paperwork, none of the 3 options suggested will do the trick unfortunately. They will all require info and docs on id, income, commitments etc. I am surprised that your bank needed paperwork for a product switch.

If your requirements are very straightforward and you don't want to use an MB you could just use the MSE mortgage finder, sort by total cost and then move down that list lender by lender.

Or else get a free MB to do the legwork for you.

In my experience, MBs take up much less of your time and effort than direct with a lender.

Solenoid

lonibra said:

If your preference is to avoid paperwork, none of the 3 options suggested will do the trick unfortunately. They will all require info and docs on id, income, commitments etc. I am surprised that your bank needed paperwork for a product switch.

If your requirements are very straightforward and you don't want to use an MB you could just use the MSE mortgage finder, sort by total cost and then move down that list lender by lender.

Or else get a free MB to do the legwork for you.

In my experience, MBs take up much less of your time and effort than direct with a lender.

We did have equity loan that was secured to house, but paid it off in full. Coop wanted to see a proof to take it off their system. Thank you. Yes I shall talk to MB. And I guess it will add to my experience. I want to buy another house after paying this one off. We dont earn to much but dont spend too much either. Well me dont spend too much. If you give my partner money he will spend it. Thats why I am looking to keep the payments same as he pays the mortgage. And I save 😁

getmore4less

Current lender?

What's the deal you are currently on because that looks very uncompetitive and probably should have been ditched.


With £200k/£67k   £540pm 13y 7m  that's a rate of  ~4% why are you paying that much on your LTV should be ~1.5% or less for 2y fix


£67k  is in the area where  no fee/fee can decide the deal with some lenders.


What did your comparison throw up for you?



0% 10years  ~£560pm  with some overpayment should ne able to get under 11y.(1.5% £550pm is 11years)


for mortgages a bit bigger than yours the Barclays the sweet spot is the 7year deal at 1.49% ( if with Barclays already the fee is cheaper)
https://www.barclays.co.uk/content/dam/documents/personal/mortgages/CoreRangeCustomerRateSheet.pdf

This would be you in 7 years with 12y full term

amount	rate	payment	owing
£67,999.00	1.49%	£516	£29,816

Overpay to £600pm (similar to ~10y full term)

amount	rate	payment	owing
£67,999.00	1.49%	£600.00	£22,382.00

if you look at 5 year no fee deals you need a rate around 1.9%  or better to compete with that 7y deal.

Barclays have 1.63% no fee (great escape if not with them and £250 cash back)

amount	rate	payment	owing
£67,999.00	1.49%	£600.00	£35,904
£67,000.00	1.63%	£600.00	£35,204

which is cheaper by £700 over 5 years

there are plenty of others about.

Nationwide has been coming up as a good choice at this level they have £500 cashback.

sticking the 2 barclays and the 2 nationwide 60% 5y fixes over 5years and taking account fees/cashback

amount	rate	payment	owing
£67,999.00	1.49%	£515.98	£41,134.45
£66,750.00	1.63%	£515.98	£40,181.33
£67,499.00	1.34%	£515.98	£40,172.61
£66,500.00	1.64%	£515.98	£39,938.12

That last one is Nationwide 60% no fee, £500 cashback, 1.64%  that will be a tough one to better won't be many lenders under that..  



you need to be thinking about lenders with good retention deals as next time borrowing will be low any switching fees can cost.

Solenoid

getmore4less said:

Current lender?

What's the deal you are currently on because that looks very uncompetitive and probably should have been ditched.


With £200k/£67k   £540pm 13y 7m  that's a rate of  ~4% why are you paying that much on your LTV should be ~1.5% or less for 2y fix


£67k  is in the area where  no fee/fee can decide the deal with some lenders.


What did your comparison throw up for you?



0% 10years  ~£560pm  with some overpayment should ne able to get under 11y.(1.5% £550pm is 11years)


for mortgages a bit bigger than yours the Barclays the sweet spot is the 7year deal at 1.49% ( if with Barclays already the fee is cheaper)
https://www.barclays.co.uk/content/dam/documents/personal/mortgages/CoreRangeCustomerRateSheet.pdf

This would be you in 7 years with 12y full term

amount	rate	payment	owing
£67,999.00	1.49%	£516	£29,816

Overpay to £600pm (similar to ~10y full term)

amount	rate	payment	owing
£67,999.00	1.49%	£600.00	£22,382.00

if you look at 5 year no fee deals you need a rate around 1.9%  or better to compete with that 7y deal.

Barclays have 1.63% no fee (great escape if not with them and £250 cash back)

amount	rate	payment	owing
£67,999.00	1.49%	£600.00	£35,904
£67,000.00	1.63%	£600.00	£35,204

which is cheaper by £700 over 5 years

there are plenty of others about.

Nationwide has been coming up as a good choice at this level they have £500 cashback.

sticking the 2 barclays and the 2 nationwide 60% 5y fixes over 5years and taking account fees/cashback

amount	rate	payment	owing
£67,999.00	1.49%	£515.98	£41,134.45
£66,750.00	1.63%	£515.98	£40,181.33
£67,499.00	1.34%	£515.98	£40,172.61
£66,500.00	1.64%	£515.98	£39,938.12

That last one is Nationwide 60% no fee, £500 cashback, 1.64%  that will be a tough one to better won't be many lenders under that..  



you need to be thinking about lenders with good retention deals as next time borrowing will be low any switching fees can cost.

Oh wow thank you for this. Those are the lowest interest rates I've seen. When you say 60%, what is it? Are we better off paying product fee or get 0 product fee? Should we get 5 years fixed if lower interest rate or stick to 10 years and leave us only 2 years to think about which, I might just pay it off in full after 10 years. I just talked to L&C by the way. He said he will come back with deals. I might come back again when I hear from him.

getmore4less

60% LTV you are under that and that is where the deals get good,  there are lenders that have offers on 50% LTV but they are not that much better

With a relatively small amount and a target of 10-12 years  I call them end of life chances are this will be the last change and it will be paid off or take a retention deal to see it out..

A lower rate for say 5 years and a bit of overpayment   and you have so little left after 5 years the rates don't matter that much if they go up much.

The need to fix for say 10 years may not be worth it especially if there are ERC which means could be a risk if change in circumstances need a move.  

Coventry do a 10y with 5y ERC so you can get out but the rate is over 2% and it has a fee


Product fee  or not depends on the details you will hear people(including brokers) say anything under X where X might £100k no fee will be better. 
seen it better to pay the fee as low as £50k  so it is check the deals at the time.

Chances are it will be no fee but sometime the rate is low enough with a fee to be worth paying.


MIght you want to overpay more than around £500pm?


One more time Current lender?


anything dodgy that could restrict lenders type of income age or credit issues?

Solenoid

Sorry current lender is cooperative bank. Now you said it, I paid £64000 equity loan in 12 years. So I guess I might be able to pay off this mortgage in 5 or so, if I save up the same way. My partner dont want to pay more than what he pays now. Like I said, my partner pays the mortgage. So I do the savings part. I would like to buy another house where my mum lives after finishing this. So I save like mad. My partners family lives where we are, so dont want to move, but mine are miles away in another country. Or use my savings for another property and keep the minimum with this one. I dont know yet.