Remortgage dilemma

slhqoue

We are having to renew our 5 year fix and have. acouple of options.

1. Stick with Halifax, 2 year fix is £13,418 in the first year (£1118 x 12). I assume there are no fees and no extra costs.

2. Switch to Santander or Barclays 2 year fix, which is £12,850 (£1025 x 12 + £1000 initial fee). 

So by switching we'd save £550? I need to research if we'd require a lawyer to switch banks - can anyone provide any insight on this?

Many thanks for your help and expertise.

Hoenir

Are you going to pay the initial fee or add it to your mortgage? 

lfc321

I make it more of a difference over the term of the fix  (this is assuming you pay the £1000 fee up front). 

Halifax cost over 2 years: £1118 x 24 =£26,832.00 

Santander/ Barclays cost over 2 years: £1025 x 24 =£24,600.00 + £1000 =£25,600.00


(I’m also assuming here you’re comparing like with like in terms of mortgage end date).  

housebuyer143

You need to pay a solicitor for a remortgage if it's not free and it will probably exceed that saving. Sometimes you need to weigh up the hassle that saving that £500 brings. I would just product switch on those numbers.

slhqoue

OK so it's a saving of possibly £500 over two years to switch it seems? Is there any chance of presenting Halifax with the rival deal and negotiating a better rate? Or does that sort of thing just not happen?

kp734

Lenders will often cover your legal fees but beware there’ll almost certainly end up being some costs which aren’t covered.

I switched to Nationwide a few years ago for less of a saving than you’re looking at and was told I wouldn’t have pay a penny in fees but still ended up with a bill for about £150 at the of it, and the switch didn’t complete in time so I ended up on the standard variable for a month. Saved very little in the end.

housebuyer143

slhqoue said:

OK so it's a saving of possibly £500 over two years to switch it seems? Is there any chance of presenting Halifax with the rival deal and negotiating a better rate? Or does that sort of thing just not happen?

No, you can't haggle.