Remortgaging Fees

[ParkerG]

My mortgage expires soon and I've been pleasantly surprised at the new deal(s) Santander have offered me are no worse than what I'm currently paying (given BoE rumblings).

£90,000 outstanding
LTV between 58-65% depending on who's price valuation you believe.
29 years remaining (yes I know...)

2.29% for 5 years, or £350 a month, £0 fees and can make the change today.

I've used comparison websites and while I can get a slightly better rate (1.71%, £330 a month) they all come with massive fees (£1800), so over 5 years I'm still £600 short.

Am I right in saying I should go stick with Santander, I'm not missing anything am I? Finally before someone comments on the 29 years remaining that was just to make myself comfortable when I got the house, I intend to be setting up a direct debit of £150 a month to overpay.

[Sarnie]

ParkerG said:

My mortgage expires soon and I've been pleasantly surprised at the new deal(s) Santander have offered me are no worse than what I'm currently paying (given BoE rumblings).

£90,000 outstanding
LTV between 58-65% depending on who's price valuation you believe.
29 years remaining (yes I know...)

2.29% for 5 years, or £350 a month, £0 fees and can make the change today.

I've used comparison websites and while I can get a slightly better rate (1.71%, £330 a month) they all come with massive fees (£1800), so over 5 years I'm still £600 short.

Am I right in saying I should go stick with Santander, I'm not missing anything am I? Finally before someone comments on the 29 years remaining that was just to make myself comfortable when I got the house, I intend to be setting up a direct debit of £150 a month to overpay.

It's an expensive rate...........circa 0.3%+ more than what is available elsewhere..........that's the premium you pay for being able to "just press a button".......which is what they rely on and hope you do............

[alfabeat]

But no transfer fees and no new valuation needed and no hassle. Sounds like a reasonable deal to me.

[Sarnie]

alfabeat said:

But no transfer fees and no new valuation needed and no hassle. Sounds like a reasonable deal to me.

No transfer fees with other products either and at 59% LTV valuation wouldn't be a concern and would likely be automated anyway.........

[thekingisdead]

+1 it’s really not that much more hassle to switch lender. Most will offer free Conveyancing and they take care of the vast majority

FWIW I’ve just switched to Santander, 1.79% for 5 years. No fees
Your offer doesn’t seem that great to me

[ParkerG]

Sarnie said:

alfabeat said:

But no transfer fees and no new valuation needed and no hassle. Sounds like a reasonable deal to me.

No transfer fees with other products either and at 59% LTV valuation wouldn't be a concern and would likely be automated anyway.........

Hi,
where can I find these other products because absolutely everything on comparison websites come with rather large fees which negate the lower rate, and reading the likes of money saving expert suggest this is normal.

Thanks for your input so far.

[Sarnie]

ParkerG said:

Hi,
where can I find these other products because absolutely everything on comparison websites come with rather large fees which negate the lower rate, and reading the likes of money saving expert suggest this is normal.

Thanks for your input so far.

Contrary to popular belief..........comparison sites and MSE are not the last word in mortgage lending...............speak to a broker!

[ParkerG]

Sarnie said:

Contrary to popular belief..........comparison sites and MSE are not the last word in mortgage lending...............speak to a broker!

I'm assuming today is your day off, I'll call you Monday

[Sarnie]

ParkerG said:

I'm assuming today is your day off, I'll call you Monday

Not in the office today but drop me a mail if you like, no problem at all!

[Piersman2]

I did the same at the end of last year. Renewed directly with Santander for another 2 years. No paperwork, a better rate than the previous 2 year deal, no fees. Simple on line application to confirm deal.

IIRC the rate came down from 1.49 to 1.29 over two years despite the BOE rate having just gone up.

Well done to Santander, didn't feel they were holding back decent deals to existing customers as so many other industries/companies do these days.

[ParkerG]

So I looked a bit further into this, and although I can remortgage with no fees as such, I'd still have to pay Santandars exit fee and any fee associated with using a broker (£300-450), so in the first 5 years I wouldn't actually save anything and after that I'm potentially back to square one.

So in these circumstances it's not worth changing.