Mortgage Crossroads

Wrath_of_Kain · 9 May 2019 at 9:52PM

Hi Yall,

Currently at a cross roads and not 100% sure what to do.

I have 11 years left currently on a BOE +1.25% tracker =>@ 2% currently on the main mortgage with some additional mortgage tied in on an SVR of 4.24%.

I saw this product recently:

https://mortgages.firstdirect.com/mortgage-rates/product/10-year-fixed-repayment-fee-saver-20-24

I put the figures for the First Direct into a mortgage calculator and it still spits out roughly what i am currently paying now -£5.

Thinking even withstanding not actually saving much at least my payments will not go up for at least 10 years and with the SVR exposure is something that could probably climb quickly.

I am tempted to lock into one of these long terms which will get me close to the end of my mortgage and with Brexit imminent might be a prudent choice.

I assume from a re-mortgaging perspective the only fee is the booking fee and my redemption administration fee with current provide (£110)

Any opinions or advice on what you think i should do etc. gratefully received :A

Thrugelmir · 9 May 2019 at 10:58PM

Remortgaging to a new lender may well incur valuation and legal fees as well. Which could erase much of the benefit of switching. Overpay the higher borrowing on the SVR. Likewise while rates are low take the opportunity to make hay by funding some savings from within your budget. Debt only has to be repaid once. The interest savings will snowball.

Wrath_of_Kain · 10 May 2019 at 8:20AM

Thanks Thrugelmir
As far as I am aware there are no fees:

https://mortgages.firstdirect.com/mortgage-rates-fees/fees

VALUATION
"As part of the mortgage process for residential properties, we will conduct a Standard Valuation free of charge. The current fee for Homebuyer Reports and Building Surveys for residential property valuations, including VAT (UK only), are detailed below. This may be subject to change without notice. If you choose to have a Homebuyers Report or Buildings Survey in addition, the following fees apply:"

LEGAL FEES
"If you are changing the owner(s) of the property you're Remortgaging you will need to pay for the associated legal costs that come with this.

Where the mortgage and property will both continue to be in the same names and the property will be your main residence, we will prepare the legal documentation. This means that there will be no basic solicitors costs for you to pay. However you will not have any legal representation unless you arrange and pay for it yourself.

If you are transferring your mortgage to first direct from another mortgage provider, they may charge an Early Repayment Charge if you are moving during a fixed rate or "tied-in" period."

There is no ARRANGEMENT or BOOKING Fee ...... I think the only fee is £115 for the early repayment admin fee with the existing mortgage provider.

getmore4less · 10 May 2019 at 1:43PM

Without the sizes of the mortgage parts its just guesses on the potential saving/loss

if 50% LTV you could also look at the Coventy 10y deals they become ERC free after 5 years

Wrath_of_Kain · 11 May 2019 at 5:17PM

getmore4less wrote: »

Without the sizes of the mortgage parts its just guesses on the potential saving/loss

if 50% LTV you could also look at the Coventy 10y deals they become ERC free after 5 years

What do you think then?

XXXX
XXXX

Wrath_of_Kain · 12 May 2019 at 6:33PM

Any opinions/ advice ?

Thrugelmir · 12 May 2019 at 7:26PM

Interest rates are going to rise in the future. Irrespective of the outcome of Brexit.

What options do you have with your current lender?

Wrath_of_Kain · 12 May 2019 at 7:44PM

Thrugelmir wrote: »

Interest rates are going to rise in the future. Irrespective of the outcome of Brexit.

What options do you have with your current lender?

I haven't spoke to them yet tbh ... do you see a problem changing providers ?

I can contact them and see if they can match the same product ?

Thrugelmir · 12 May 2019 at 10:14PM

I don't foresee any particular issues in switching lenders. On the basis that you meet the lenders criteria.

To make any meaningfull comparison always worth seeing what products are on offer from your current lender.

Wrath_of_Kain · 12 May 2019 at 10:22PM

Thrugelmir wrote: »

I don't foresee any particular issues in switching lenders. On the basis that you meet the lenders criteria.

To make any meaningfull comparison always worth seeing what products are on offer from your current lender.

I will contact the current provider this week.

Is my thinking correct though i.e. no fees + fixing in at a low rate for pretty much the remaining life of the mortgage + free overpayments is MUCH better than my current predicament of BOE and SVR's ???

I know that when you take out a mortgage you are mainly paying off the interest before the capital but does that have any bearing in a remortgage ?

Wrath_of_Kain · 16 May 2019 at 5:51PM

Got an appointment tomorrow ..... would appreciate some advice on here mind you ?

Mortgage Crossroads

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