Way to choose a remortgage

poorjim

Hi All

My fixed rate ends at the end of april. I have recieved advice and have enquired at my current lender. Payments at my current lender go up by about £100 to about £936 on the new deal.

The deal from the adviser is £890 ish but the fees are stupidly high ranging from £800 to £1500. I understand that my current lender is retrieiving there fees through the hight rate being charged. But I never expected it to cost so much to go somewhere else.

I have a some questions which I would love some help with.

1. Should I try and haggle with the current lender. Or is this the final offer?

2. Is it inevitable that I will pay to enter a new fixed rate?

3. What would be sensible fees on a £140k mortgage?

Its so confusing and I hate dealling with this sort of thing so any help is greatfully recieved.

pj

chappers

Don't think haggleing will do you any good.
Not sure what rate you are currently on or what rates you have been offered but I doubt you will be getting anything better than you are on already fixed rate or not.
Fees vary from zero to sky high so how longs apiece of string.
Your broker should be able to tell you which is the cheapest over the fixed term , when fees are taken into consideration.
Also bear in mind if you fix again and then decide you want to fix after that you will be hit with fees again, not to mention you may be at the mercy of whatever deals are around at the time. If you are fixing for piece of mind why not consider fixing for a longer period.

poorjim

I was thinking of fixing for longer so I know what I am paying. At £900 or so on a repayment is high anyway so I may as well fix it that way.

Its just people have said that I will end up paying more.

As for the moving the problem is that I don't have savings to pay the various fees. The adviser said about extending the mortgage to cover them. But that feels like going backwards. I have paid off 4k over two years to then increase by 1 - 3 k feels totally wrong.

With the current company there is no fees but the interest rate is about 5.75 but at least i'll still have a mortgage which has gone from 146k to 142k and at that rate I would get it down by 10k over a 5 year fixed. (is that good?)

UK007BullDog

There is definitely no haggling with mortgages.

UK007BullDog

If you plan to stay in your property for the next 5 to 10 years then fix it for 5 or 10 years. I would fix for 5.

Take the rate from your current lender and pay no fees. Like you said what is the point of adding fees to the mortgage taking you back to where you were before? If you don't want to pay that fee then do not do it. However you could look for a fees free remortgage deal from another bank. But the rates have gone up so you will not be getting rates like you did 2 years ago.

poorjim

Agreed 007. If I got a fees free I would still have to payout for solicitors fees?

UK007BullDog

Not necessarily, most fees free deals include free sols, free survey, and at times free product fee or a combination if you remortgage away from your present lender to a new lender.

If you remortgage with your current lender you will only have the product fee or no product fee, depending on deal. If you borrow more then you might have to pay a survey fee.

poorjim

Interesting so I could ask an IFA to find me the best fees free deal which beats my own lenders rate?

I am thinking of changing to a contracting job if I fix for 5 years will I have to inform them of the change in circumstances?

UK007BullDog

First question yes and second question I would change to contract after remortgaging especially if you change lender!!!!!

poorjim

Thats exactly what I was thinking. It also sounds like a 5 year fixed would suit contracting better as well.