Remortgage

Mokeyjen

Hi,

I am due to remortgage in June and am looking for a fixed rate for 2, 3, or 5 years, and although I have found some fairly good deals (5.79%?!), they all charge valuation fees and product fees of £1000+

Is there any companies out there who don't charge you these? It is bad enough having a ridiculously large mortgage without having to stump up this extra cash!

Any suggestions?

Thanks

mitchaa

Oh oh, not again:rotfl:

You are buying an interest rate.

Low rate 4-5.25% = High fees (1-2% etc or £2-3k)
Middle rate 5.25-6.25% = Middle fees (£500-£1000)
Higher rate 6.5%+ = No fees

(% used above, just rough examples)

You want a low rate, you have to pay for it.

It's all a con, you have to work your figures out. A 6% rate may work out cheaper than a 5% rate when you take the arrangement/product costs into consideration.

thesecretpolicemansball

Term - fixed for £125,000

Monthly repayment

24 Payments

Setup cost

2yr Cost

Avergage monthly cost

4.99

£691.22

£16,589.28

£2,500.00

£19,089.28

£795.39

5.69

£744.65

£17,871.60

£999.00

£18,870.60

£786.28

5.79

£752.43

£18,058.32

£599.00

£18,657.32

£777.39

6.24

£787.93

£18,910.32

£0.00

£18,910.32

£787.93

Hey this is a spreadsheet I did when changing my mortgage. I was changing providers and the fee thing was sooooo confusin so I did my sums!!! Mitchaa is so rite about how the fee thing works out. Now I had the cash to pay fees so it was ok for me but what i wanted to know what I would have to pay back monthly to get my fees back into my piggy bank for when i change again if you cathc my drift i was paying the mortgage and saving the extra to get my nest egg back.

Hope this helps

thesecretpolicemansball

That didnt past exactly the way it was suppose too!!! DOOOOOHHHHH

Well here the first number is the rate, the second is the montly repayment on 125k, the third is the overall cost of 24 mths payments, the fourth is the setup fee and the fifth is the cost of the fee and the 24 repayments and the sixth is the total per month i needed to spend on both my mortgage and getting my fee back. The cycle then repeats itself for different fees and interest rates.

maddie2750

Derbyshire Building society are doing 5.59% fixed for 3 years with no fees (except £30 CHAPs fee) - 90%LTV - was going to get it myself but wanted a longer fix

One_step_forward

Mokeyjen wrote: »

Hi,

I am due to remortgage in June and am looking for a fixed rate for 2, 3, or 5 years, and although I have found some fairly good deals (5.79%?!), they all charge valuation fees and product fees of £1000+

Is there any companies out there who don't charge you these? It is bad enough having a ridiculously large mortgage without having to stump up this extra cash!

Any suggestions?

Thanks

Have a look at Nationwide, 5 yr fixed at 5.83%

only £499 reservation fee which can be added to loan and free valuation...

Cash-Is-King

I read in the Sunday Times Business Section that analysts reckon Bank Of England will cut Interest Rates to 5% next month and will keep cutting till a low of 4%.

I also read in another section that hanging around on your lenders SVR is costly - they suggested for those looking to see if the market lowers before fixing to move to a life time tracker such as First Directs (5.59% fee £399) which allows you to switch without penalty.

I have to make my mind up by 31 May and change - until reading this I was definitely fixing immediatley now I am unsure - argggghhh!

350nutter

I've just found a 5 year fix with first direct at 5.29% with £299 arrangement and £299 setup fee - valuation £99. The set up fee can be added to the mortgage.
I wasn't going to change from Natwest until I saw this one.

The BoE rate may comedown for a while, but mortgage rates are going up at the minute from what I've seen.

I wondered about the tracker mentioned in the above post; but feel that interest rates may start to increase rapidly over 2-3 years so prefer the stability of the fix.

I'm not a financial person, so don't rely on the above paragraph as having and substance to it. It's just my personal thoughts.

minimike2

Cash-Is-King wrote: »

I read in the Sunday Times Business Section that analysts reckon Bank Of England will cut Interest Rates to 5% next month and will keep cutting till a low of 4%.

I sincerley doubt that in the short - medium term considering the state of inflation at the moment.

Cash-Is-King

I agree Mike ... so fix or life time tracker that u can jump off with no penalties - what do you reckon (if fees are comparable)?

minimike2

hard to say without knowing full circumstances for any individual.

Thing is now a lot of life time tracker deals have penalties to come off - Woolwich and C&G most recently applying 1% penalty for the first three years - wising up to what people were doing I think!