Costs encountered when remortgaging

tutter_1

Hi,

Am looking to remortage, and just trying to establish what fees I would have to pay.

Currently owe 107,400 over 23 years with no redemption penelty in current mortgage which is now on SVR.

I know that I would have to pay the lender:
Arranagement Fee (if applicable)
Valuation Fee
Legal Fees

The question I have is if I have to pay the lender Legal Fees, do I need to pay additional legal fees for myself, or would this incorporate all legal activity.

Also is there any other fees that I would need to pay to either the lender or anyone else, that I should factor into my calculations when deciding what is the cheapest mortgage? If so, what should I estimayte these costs as being?

Many Thanks.

lisyloo

do I need to pay additional legal fees for myself

Not usually, if it's a straight remortgage.
If you want to do something else like adding a partner then you would have to pay for that yourself as the mortgage company will only cover the remortgage and not anything additional.

Also is there any other fees that I would need to pay to either the lender or anyone else

There are some fees that you may have to pay your lender for closing your old mortgage.
There is sometimes a fee for releaseing the deeds and also and admin fee for closing it down (sometimes called a redemption or sealing charge).
You could estimate £150 but it varies so best to check and give your existing lender a call.

Also factor in an redemption penalties if have or had a special deal and are ending it early.

Also there is possibly a MIG if you are on a high loan to value.
This is a mortgage indemnity guarantee. It's a insurance policy that covers the lenders if you default and your house is worth less than the mortgage. Only charged where the mortgage is high compared to the value of the house.

I think that's it.

Also if you are thinking of remortgaging every 2 years then you should consider the deeds release fees and sealing charge on your next mortgage, as you will have to pay that in 2 years time.
It's not comething you need to calculate but something you need to bear in mind.

tutter_1

Hi,

Been looking and the best fixed rate I can find, with low initial costs (fees, etc) is:

Nationwide Fixed 2 years @ 4.95%. No tie ins at the end of two years.

Just a £349 booking fee, and need to pay Abbey £99 for the sealing charge. Nationwide give me free valuation and free legal costs.

Is there anything else I am missing, I assume that Nationwide are reputable, has any one had problems with them?

The other benefot I can see is that Nationwide offer all their mortagages to existing customers, which means when the special rate is up, I can select the best one for me again.

Please let me know if I am missing something, seems too good to be true.