Fees on a small mortgage

indigogirl_3

I am coming to the end of a 2 year tracker at 5.05%
My existing lender has offered a Fee Free fixed rate of 7.69% for 2 years or tracker of 1.39% above the BR.

My loan amount is 32,500 and I have 12 years left to pay which I'd like to reduce to 11 if possible.

Will the benefits gained by changing to a different company offering a more competitive rate be nullified by paying a fee of eg £500 (this is almost the equivalent of 2 monthly payments?

I'm on a low income with nothing to spare so relatively small differences of £20 pcm start making a difference to me.

I'd appreciate advice to sift thro the options.

lee3272

7.69 seems really high why dont you do it ya self go here http://www.fsa.gov.uk/tables/

did all mine myself really easy just a few forms to fill in just sorted mine out fixed 3 year at 5.53 cheapest broker could get me was 6.29

indigogirl_3

I'll have a look there,thanks.
I tried moneysupermarket but it said it couldn't help!
I'm finding it difficult to work out the impact of the fees. A fee of 800 will be an extra £30 pcm over 2 years which might be the same as staying put

_Andy_

How about Nationwide lifetime tracker no fee 6.44%?

mr_mortgage

Don't forget to consider any exit fees your lender might charge you - are there deeds release fees, for example? Could be a couple of hundred quid.

indigogirl_3

_Andy_ wrote: »

How about Nationwide lifetime tracker no fee 6.44%?

I've looked at this one now thanks.

The monthly amount they have given (£343) is the same as I have been quoted with my current lender (1.39% above BR tied in 2 yrs) so there would be no point moving given deed release fees etc

Is this as good as its going to get??

MarkyMarkD

I don't think you needed to go onto their website to work out that a tracker at BBR+1.44% is less good value than one at BBR+1.39%, whether or not there were moving costs involved. :rolleyes:

indigogirl_3

MarkyMarkD wrote: »

I don't think you needed to go onto their website to work out that a tracker at BBR+1.44% is less good value than one at BBR+1.39%, whether or not there were moving costs involved. :rolleyes:

Obviously I am not an expert and know next to nothing about mortgages which is why I posted this thread for help and advice
There is clearly a gap in my understanding as I didn't realise that a "lifetime tracker no fee 6.44%" implicitly meant it was a "tracker at BBR+1.44%" so I did need to check the website.

"Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps."

Your patronising attitude is unnecessary and unhelpful

_Andy_

The comment may have been aimed at me. I should've spotted the rate wasn't as good. I do tend to skim-read threads/posts sometimes which is because I was at work at the time.

TEDDYRUKSPIN

Just go to HSBC. 0.99% + B.O.E. (5.99%) life time tracker for free! They will pay for your remortgage, survey, and solicitor costs. You will have to pay for the exit fee with your current lender though.

MarkyMarkD

indigogirl I was simply pointing out that a tracker at BBR+1.44% is obviously dearer than one at BBR+1.39%. Don't get all hyper-sensitive.

I can guarantee that whenever anyone starts quoting Martin's "Pls be nice", they shouldn't. Nobody said that your question was stupid. The same logic applies to people's answers when they have spent their time and effort to discuss your original question.

Comparing monthly payments is not a good way to compare mortgage products, because the monthly payments will vary depending what assumptions each lender makes about fees (i.e. whether they add them on or assume you pay them up front) and other reasons. The fact that the monthly payment appeared to be the same for the Nationwide product, despite the rate being higher, is proof that comparing monthly payments is bad practice.

It is best to use your own common-sense to compare the rate on offer.

A tracker is by definition a fixed margin over (or, in the happy days a few years ago, even under) the stated rate - usually BBR.

_Andy_- it's easily done and I don't blame you.

TEDDYRUKSPIN - your suggestion will save the OP 0.40% for 2 years on an average of less than £32,500, i.e. less than £260. Whilst that may, just, be less than their exit fee, I honestly think it's a huge waste of effort to save a tiny amount of money. The OP also mentions being on a low income, so now isn't necessarily the time to suggest attempting to remortgage when it may not even be possible, for tiny if any savings.