changing mortgage provider

JoeyG

I'm with C&G at the moment... whats a retention deal?

HelpWhereIcan

It means that they offer you a new deal as an alternative to paying SVR or switching lender.

C&G have a range of deals for existing customers

http://www.cheltglos.co.uk/existing-switch-deals.asp

which will be best for you is something that will depend on what you are looking for, your exact circumstances and which works out the lowest total cost over the period you choose taking into account all fees and charges.

eg they have 2 5 year fixed rates for people with 25% equity - one at 5.99% with a £995 fee and one at 6.29% with no fee. Depending on your loan amount and mortgage term, it could be worth paying the higher rate to pay less over 5 years.

I do not know enough about you and your circumstances to say which will be best for you, but you can apply online with C&G

https://secure.mortgages.cheltglos.co.uk/mortgage/Mortgage_Existing_Customer.asp

or if you wanted advice you could try the branch and speak with one of their 'advisers' - make sure they are offering advice and not just 'information' - or pay a fee to an independent mortgage broker who will help with the sums and compare to what else is available on the market.

I say pay a fee as C&G do not pay commission on these deals nor allow a broker to arrange it for you and it is likely that some advisers will only consider them if you are paying a fee. But then again they will look at all other deals from all other lenders as well.

nspnick

Night-owl wrote: »

What silly advice, go back to what you know, the basics, if that!!!
Numpty:rotfl:

Think thats a bit harsh. Legals will certainly be £300 plus and SVR will be 300 for full month. Thought it was reasonable advice myself.

_Andy_

Other option would be non-free legals but cashback towards it - result - more efficient and speedy completion at a cost of around £50 to the borrower.

MarkyMarkD

Night-owl wrote:

What silly advice, go back to what you know, the basics, if that!!!
Numpty

nspnick wrote: »

Think thats a bit harsh. Legals will certainly be £300 plus and SVR will be 300 for full month. Thought it was reasonable advice myself.

The difference between SVR and most incentivised rates is around 1.5% right now (at the very most).

As nspnick says, legals cost around £300 or so.

So for it to be worth paying for legals, rather than accepting a lender's "free legals" offer, you need to do the deal quicker such that you save over £300.

On a £100,000 mortgage, 1.5% is £1,500 per year or £125 per month.

There is no way that, on a £100,000 mortgage, it is therefore worth paying for the legals, because you'll never get the deal done 2.4 months quicker.

Even on a £200,000 mortgage, you won't get the deal done 1.2 months quicker, so it's not worth paying for the legals.

So, I stand by my advice.

Night-owl, please don't post rubbish particularly where it involves:

(1) not calculating anything to prove your point; and
(2) slagging off other people who evidently know far more what they are talking about than you do.


Incidentally, the "savings" calculated above from "doing the deal quicker" are in many cases illusory. If the new deal is for a fixed number of years, then completing quicker simply means that the deal will run out quicker, so what you save in the short term you lose out again by having to remortgage/switch products quicker in the longer term.


Andy's suggestion of taking cashback from the lender instead of free legals, if that's an option, is a far more sensible one than simply rejecting the free legals.