Yorkshire Building Society - Remortgage Questions

houmie · 1 October 2017 at 10:24PM

Hi,

Last year was the first time I bought a place, so I'm a beginner. When is it a good time to remortgage? I have only one year left. Do you usually start six months before the end? Or is now a good time?

I'm right now with Santander on a 1.24% tracker mortgage for another year. As the interest rates may go up by 0.25% in November, maybe it's a good time to start a fixed mortgage.

I have found Yorkshire Building Society to provide a 0.99% mortgage, which is very decent.

How does YBS calculate the value of my property? I couldn't find any calculator on their website to see in which LTV I fall and. According to zoopla my flat has only risen by 3K since last year. Is this something I could call YBS and ask for?

But according to this comparison site despite the hefty £1,495 fees to remortgage, it would come down cheaper over two years term, even without rates going up.

Are there any other fees involved with YBS beside the £1,495? Do I need a new solicitor for this or can this just be done directly?

Many thanks and sorry for so many questions,
H

getmore4less · 2 October 2017 at 6:38AM

How big is your mortgage?
current term and payment?
Any penalties on leaving Santander?

houmie · 2 October 2017 at 10:43AM

getmore4less wrote: »

How big is your mortgage?
current term and payment?
Any penalties on leaving Santander?

Thanks for coming back to me.

The mortgage is £408,339.50
Term: 27 years left
Interest rate: 1.24% Tracker
Payment: £1,483.68
No Exit fee (but a final administration fee regardless of leaving or staying: £235)
No early repayment charge
No limit on early repayment

I could pay £8,339.50 as a lump sum to bring the LTV down to 60%.
But I don't think that makes any difference. According to Martin's calculators, the best deal for me remains with YBS with 0.99% fixed, which happens to have an LTV of 75%.

What is your advice?
Thanks,

houmie · 3 October 2017 at 5:54PM

Have I provided all information you needed?

Many Thanks,
H

Thrugelmir · 3 October 2017 at 6:06PM

houmie wrote: »

The mortgage is £408,339.50

If you have no plans to move. I'd give every cosideration to locking into the best longest term rate you can find in the market. As with a balance owing of that size. You are exposed to the winds of change for some years to come.

Switching to a new lender will involve a solicitor. Plus valuation and exit fee. Easy to part with a £1k . Remortgaging isn't cost free.

houmie · 3 October 2017 at 6:23PM

Thrugelmir wrote: »

If you have no plans to move. I'd give every cosideration to locking into the best longest term rate you can find in the market. As with a balance owing of that size. You are exposed to the winds of change for some years to come.

Switching to a new lender will involve a solicitor. Plus valuation and exit fee. Easy to part with a £1k . Remortgaging isn't cost free.

Hi, thank you for your help.

I'm not planning to move for the time being.

Yes, I expected the valuation fee to be included in the £1499 fees from YBS. But I didn't know I had to hire a new solicitor again.

If I switch from my 1.24% tracker to 2 years fixed 0.99%, I can almost pay the same amount of monthly mortgage but reduce the term by 2 years. This considers the £1499 fees. But not the solicitor fee.

Do you think it's still worth doing 2 years fixed? Especially since the rates could rise (possibly not) from next month?

If I go with
2 years at 0.99%
3 years at 1.38%.
4 years at 1.64%
5 years at 1.59%

I don't see the rates rise more than 1% in the next 5 years.
In the past 9 years, the rates kept going down. They can't raise that much without affecting the market horribly. Especially now after the uncertainties. Hence I think the 2-year deal is the most attractive. Although I still need to find out how much a solicitor costs for a remortgage purposes.

What do you think?

Yorkshire Building Society - Remortgage Questions

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