Remortgaging advice ... am I working it out right ?
Discussion
Morning gents,
Bought my first house 2 years ago and the time has already come to shop around and find better rates .
Doing some online checks it seems Natwest can offer us the best deal and our current providers can’t match. What I am trying to work out is which pays off the most of the capital , is it as simple as the lower the interest rate the more comes off the actual loan amount ?
By my fag paper maths I get the following numbers
I’ve rounded numbers to all reflect payments over 24 months.
2 year fixed rate = £35,849 over 24 months (no product fee)
5 year fixed rate = £36,927 over 24 months (no product fee)
2 year fixed cashback rate = £32,704 over 24months + £995 product fee (less £250 cash back)
5 year fixed cashback rate = £34,144 over 24 months + £995 product fee less £250 cash back)
So my maths says it’s cheaper to go for the 5 year cash back deal as it’s £34,144 over 2 years compared to the 2 year fixed rate and only one lot of product fees vs 2 in a 5 year period to get the equivalent??
Not sure it will make sense you but but that’s my thinking.. otherwise what looks like the best deal out of the offers above ?
Many thanks
Fb
Bought my first house 2 years ago and the time has already come to shop around and find better rates .
Doing some online checks it seems Natwest can offer us the best deal and our current providers can’t match. What I am trying to work out is which pays off the most of the capital , is it as simple as the lower the interest rate the more comes off the actual loan amount ?
By my fag paper maths I get the following numbers
I’ve rounded numbers to all reflect payments over 24 months.
2 year fixed rate = £35,849 over 24 months (no product fee)
5 year fixed rate = £36,927 over 24 months (no product fee)
2 year fixed cashback rate = £32,704 over 24months + £995 product fee (less £250 cash back)
5 year fixed cashback rate = £34,144 over 24 months + £995 product fee less £250 cash back)
So my maths says it’s cheaper to go for the 5 year cash back deal as it’s £34,144 over 2 years compared to the 2 year fixed rate and only one lot of product fees vs 2 in a 5 year period to get the equivalent??
Not sure it will make sense you but but that’s my thinking.. otherwise what looks like the best deal out of the offers above ?
Many thanks
Fb
Your forgetting about remortgage legal fee if switching lenders.
Some of those might have free legals, however the ones with cashback almost certainly won’t.
(I have access to a solicitor comparison referral scheme where solicitors will do the legals for the cashback, which can even things up)
Some of those might have free legals, however the ones with cashback almost certainly won’t.
(I have access to a solicitor comparison referral scheme where solicitors will do the legals for the cashback, which can even things up)
Mortgage_tom said:
Your forgetting about remortgage legal fee if switching lenders.
Some of those might have free legals, however the ones with cashback almost certainly won’t.
(I have access to a solicitor comparison referral scheme where solicitors will do the legals for the cashback, which can even things up)
Ok thanks, bring new to all this.. is that separate to the ‘product fee’ ? No one has mentioned any legal fees yet? Do my man maths add up or make sense ?Some of those might have free legals, however the ones with cashback almost certainly won’t.
(I have access to a solicitor comparison referral scheme where solicitors will do the legals for the cashback, which can even things up)
Many thanks
Fb
If you ring them up they'll show the balance at the end of the 2 years/5 years, with/without product fee. Then work out any legal costs.
Its a f
king nightmare tbh, there is a point when paying a product fee makes sense to get the lower interest rate - looking at your repayment amounts suggests quite a large amount outstanding, so its probably worthwhile - but Natwest are pretty helpful if you talk to them in branch or on the phone.
Its a f
king nightmare tbh, there is a point when paying a product fee makes sense to get the lower interest rate - looking at your repayment amounts suggests quite a large amount outstanding, so its probably worthwhile - but Natwest are pretty helpful if you talk to them in branch or on the phone. Condi said:
If you ring them up they'll show the balance at the end of the 2 years/5 years, with/without product fee. Then work out any legal costs.
Its a fking nightmare tbh, there is a point when paying a product fee makes sense to get the lower interest rate - looking at your repayment amounts suggests quite a large amount outstanding, so its probably worthwhile - but Natwest are pretty helpful if you talk to them in branch or on the phone.
Yes we are only 2 years in so a fair chuck to go yet ! Its a f
king nightmare tbh, there is a point when paying a product fee makes sense to get the lower interest rate - looking at your repayment amounts suggests quite a large amount outstanding, so its probably worthwhile - but Natwest are pretty helpful if you talk to them in branch or on the phone. That’s pretty much what I’m after, I’m not after the cheapest monthly repayment, I want what eats away at the balance the most but without an abundance of fees being added which I turn actually work out more expensive. We are happy to continue paying what we currently pay and reduce the term instead.
Fb
fastbikes76 said:
Condi said:
If you ring them up they'll show the balance at the end of the 2 years/5 years, with/without product fee. Then work out any legal costs.
Its a fking nightmare tbh, there is a point when paying a product fee makes sense to get the lower interest rate - looking at your repayment amounts suggests quite a large amount outstanding, so its probably worthwhile - but Natwest are pretty helpful if you talk to them in branch or on the phone.
Yes we are only 2 years in so a fair chuck to go yet ! Its a f
king nightmare tbh, there is a point when paying a product fee makes sense to get the lower interest rate - looking at your repayment amounts suggests quite a large amount outstanding, so its probably worthwhile - but Natwest are pretty helpful if you talk to them in branch or on the phone. That’s pretty much what I’m after, I’m not after the cheapest monthly repayment, I want what eats away at the balance the most but without an abundance of fees being added which I turn actually work out more expensive. We are happy to continue paying what we currently pay and reduce the term instead.
Fb
Difficult to say without knowing all the details but HSBC appears to beat the Natwest deals shown with an 80% LTV fix (scroll down a bit). No fees either:
https://www.hsbc.co.uk/mortgages/our-rates/
They have ones with and without fees so its worth running both through as paying a fee up front may be cheaper over the term due to the lower APR.
Or you could look at one of their trackers (scroll down a bit more) as they allow unlimited overpayments which could save you more over the term if you have some spare cash each month.
This tool may also be useful to compare the overall cost and the fees: https://www.moneysavingexpert.com/mortgages/best-b...
https://www.hsbc.co.uk/mortgages/our-rates/
They have ones with and without fees so its worth running both through as paying a fee up front may be cheaper over the term due to the lower APR.
Or you could look at one of their trackers (scroll down a bit more) as they allow unlimited overpayments which could save you more over the term if you have some spare cash each month.
This tool may also be useful to compare the overall cost and the fees: https://www.moneysavingexpert.com/mortgages/best-b...
KTF said:
Difficult to say without knowing all the details but HSBC appears to beat the Natwest deals shown with an 80% LTV fix (scroll down a bit). No fees either:
https://www.hsbc.co.uk/mortgages/our-rates/
They have ones with and without fees so its worth running both through as paying a fee up front may be cheaper over the term due to the lower APR.
Or you could look at one of their trackers (scroll down a bit more) as they allow unlimited overpayments which could save you more over the term if you have some spare cash each month.
This tool may also be useful to compare the overall cost and the fees: https://www.moneysavingexpert.com/mortgages/best-b...
Those HSBC deals appear almost identical to what I have from Natwest, for same LTV, same duration of fix & same fee they difference was 0.03%, but still worth checking indivdual circumstances. https://www.hsbc.co.uk/mortgages/our-rates/
They have ones with and without fees so its worth running both through as paying a fee up front may be cheaper over the term due to the lower APR.
Or you could look at one of their trackers (scroll down a bit more) as they allow unlimited overpayments which could save you more over the term if you have some spare cash each month.
This tool may also be useful to compare the overall cost and the fees: https://www.moneysavingexpert.com/mortgages/best-b...
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