Remortgaging: Advice needed please

IDN101

I wish I had found this site when I was looking into mortgages 2 years ago! Oh well, better late than never. My 2 year fixed rate deal is due to end at the end of April so I have very little time to sort out a new one- hence making this post now!

My plan is as follows:

• Meet with current mortgage lender and see what (2 year fixed rate) deals they will offer me. (I have booked an appointment for this Thursday)
• Use various Mortgage Comparison Websites to see what deals I can find myself
• Use a Whole of Market / No Fee Broker (London & Country) and see what deal they can come up with

I would be really grateful if anyone could answer my queries:-

• Am I right in thinking that all I have to compare is the total cost to me over the two years, including any associated fees?

• The total cost will be made up of the discounted monthly payment (X 24 months) and any fees (Arrangement, Solicitors, and Valuation)

• If I stay with my current lender I will not have any Valuation or Solicitors Fees to pay?

• Moving to a new lender, the Valuation and Solicitors fees may be wavered?

• The Subsequent variable rate that the mortgage goes onto after the discounted period is irrelevant, because at that time I’ll be switching again- so I won’t be paying it? Or do I need to ensure that the subsequent rates are identical when making comparisons between deals?

• If I contact a no-fee broker (eg London & Country) and they come back to me with a suggestion- am I committed to going with that?

• Staying with the same lender it will take approx 1-2 weeks to sort out? Moving to a new lender will take approx 6 weeks?

Lots of questions I know, but I really want to make sure I get the best possible deal. Many thanks in advance for all advice & feedback.

Regards,
Ian

17Dave

Your first four points are correct.
The future standard variable rate is irrelevant unless you think you will be paying it for a period. Bear in mind moving mortgage every 2 years will rack up some arrangement fees - if these are added to the loan they also attract interest.
You are under no obligation to do a deal with a broker - if they offer fee free advice they do it with the expectation of arranging your mortgage only.
Time scales are about right though they can vary a lot between lenders.

Good luck.

IDN101

Many, many thanks for the quick reply Dave.

Regards,
Ian

dwsjarcmcd

I would add
point 3 - they may be waived but if they are it will be included in the rate you pay - no such thing as a free lunch.
Last point - staying with the same lender may be immediate, re-mortgaging will be dependant on full underwriting

Finally, you should decide over what length of time you want certainty of payment i.e. the fixed rate period which could be over 2, 3, 5 years rather than just assuming 2 years is the answer.

David

IDN101

dwsjarcmcd wrote: »

Finally, you should decide over what length of time you want certainty of payment i.e. the fixed rate period which could be over 2, 3, 5 years rather than just assuming 2 years is the answer.

David

Thanks David- yes, good point. I think 3 years may suit us better. Obviously the same sort of calcs can be done to compare overall monthly cost (including fees) between various lengths of fixed period?

I've got appointment with existing lender this Thurs- so at least the ball's rolling!

Cheers once again,
Ian