Remortgage Early and Pay Early Redemption Fee?

Greenr

If i can remortgage early for say 5 years paying the same or slightly more than what we pay now (as long as it's still affordable) I'll be happy. I dont want to spend the next 10 months worrying that our mortgage may shoot right up in may 09...

beecher

mitchaa wrote: »

The new product fee is going to be there regardless of it being today or next May. Most people do add this to their mortgage

The early redemption fee however is unnecessary.

I wouldn't dream of adding a product fee to my mortgage - it is crazy to pay interest on it over the remainder of the term. If 'most people' are doing so without immediately paying it off when the mortgage starts then they're being really very badly advised.

mitchaa

Greenr wrote: »

If i can remortgage early for say 5 years paying the same or slightly more than what we pay now (as long as it's still affordable) I'll be happy. I dont want to spend the next 10 months worrying that our mortgage may shoot right up in may 09...

I think thats the best way to look at it.

Its the worry of not knowing and peace of mind.

Greenr

beecher wrote: »

I wouldn't dream of adding a product fee to my mortgage - it is crazy to pay interest on it over the remainder of the term. If 'most people' are doing so without immediately paying it off when the mortgage starts then they're being really very badly advised.

not everyone can afford to pay out £1000 in one lump sum so they may not have much choice?

beecher

mitchaa wrote: »

Do they still offer 97%?

I would imagine astronomical fees for 6.19% 97% LTV

sorry just realised it is 95% now - £999. £699 for 75% at same rate so not a great difference - Halifax don't really tend to reward those of us with low LTVs unfortunately.

mitchaa

beecher wrote: »

I wouldn't dream of adding a product fee to my mortgage - it is crazy to pay interest on it over the remainder of the term. If 'most people' are doing so without immediately paying it off when the mortgage starts then they're being really very badly advised.

Yep, i get what you're saying and when you get down to the nitty gritty and analyse it further over a long term it does seem silly, but its such a small difference to your monthly payment that i would say most people wouldn't bother about it. Adding my fee to mine added a whopping £3.25 to my mortgage payment. Had enough to pay out at the time with solicitor/stamp duty and moving costs i thought it was the best decision for me at that time.

beecher

Greenr wrote: »

not everyone can afford to pay out £1000 in one lump sum so they may not have much choice?

I would chose a more expensive product for a lower fee if I couldn't afford the £1000 - it is a false economy to add it to the mortgage, particularly if you are close to the 75% LTV and have a relatively small mortgage. Be wary of panicking into remortgaging early - the best bet for you might be to overpay significantly, save up a £1000 product fee and then see what's available in May - you don't have to be only looking at Halifax and might find another bank's rates are better for you.