Remortgage open market vs current lender deal - costs?

EnterUserName

Hi all,

It looks like I might be able to save approximately 0.19% (on £200k) by using a broker, vs the bog standard "press the button" remortgage with current provider.

In terms of costs to go open market, aside from broker and product fees, what else is there typically to pay? 

Also, what roughly is the process. E.g. I assume I will need to provide inner leg measurement, payslips etc.

I'm just trying to work out if it is worth it for the maximum potential saving of about £30/m for 2 years (I think).

Comments welcome!

RelievedSheff

If your case is a fairly standard case and you are not tight on affordability you can apply for a mortgage yourself and save on broker fees. It is a relatively straight forward procedure if your case is simple.

Product fees, legal fees and valuation fees will vary depending on which lender you choose and which product your choose.

I did our last remortgage myself. We chose a fee free product that had free legals and valuation so to remortgage cost us nothing upfront. As it happened in our case the fee free product was the cheapest overall of the options available when looking at the total costs involved. 

The process and documents required for a remortgage to a new lender are the same as would have been required when you took out the mortgage that your currently have. For a product transfer with your existing lender there are usually no extra checks or documents required.

simon_or

See what your remortgage (new lender) options are, see what your current lender options are and compare.

There are plenty of reasons why you'd want to use a broker rather than go direct - access to lenders and rates that aren't available direct, ability to secure a remortgage rate much earlier than 6 months, etc. and if things go wrong, someone that gives a s**t about getting it through.

And you don't have to pay a fee if you don't want to, there are plenty of free brokers out there, and whether you pay a fee or not makes no difference to your rate.

Like all things in life, not alI brokers are made equal and I don't rate the large factory brokers, but I'm lucky to have a good broker who I've been using more many years that didn't charge me after the first mortgage I took out through her.

For example, I got a 3.27% Virgin remortgage rate while the cheapest comparable direct product was 3.52% because it was an exclusive to intermediaries.

If someone like yorkshire or first direct is offering the best rates then go direct as your broker can't help.