The remortgaging game
Discussion
Our current mortgage deal expires next month so I am trawling around looking for good deals again using people like Charcol online and moneysupermarket. Although I can find plenty of mortages at a good rate, they come with staggering costs attached to them in terms of application fees, valuations, legal etc etc. I have been offered a 2 year fixed rate of 4.99% and no fees if I stay with our current lender, the Woolwich but that still puts our monthly payments up a little (currently on 4.79%), a trend that I am trying to reverse. I can't seem to find anything better due to the £1,000 of fees that they come with!
Any mortgage experts out there care to share what types of mortage (BTW, I want interest only) are proving to be the best deals and what feelings are about what interest rates will do over the next 2 years now the housing market has slowed down?
Any mortgage experts out there care to share what types of mortage (BTW, I want interest only) are proving to be the best deals and what feelings are about what interest rates will do over the next 2 years now the housing market has slowed down?
JonRB said:
Indeed. The mortgage companies are cottoning on to "rate tarting" and it is becoming less attractive to change now. In fact, this time we went with a new product with our current lender as it proved to be a reasonable deal (despite them loading us with a ton of fees, charges, etc.)
^^^^^^
What he said.
Stayed with our existing lender.
dieseljohn said:
Not much help but I found exactly the same thing. Ended up staying on with existing lender on a worse deal simply to avoid the fees.
It was a big contrast to being FTB when the lenders were bending over backwards to get my business.
best remortgage 2 year fix out there after a quick (10 second
) search looks like the bristol & west deal @ 4.39% with no extended tie in and a £599 fee although they'll charge a valuation fee on top of that... when I get time i'll have a proper look 
minimax said:
best remortgage 2 year fix out there after a quick (10 second
Got our (FTB) mortgage with them, easily the best deal on the market at the time for a 95% deal. They do pick safe bets though and I was suprised to get a mortgage with them as I'm essentially a self-cert case who had the benefit of healthy P60 and payslips...
Also no tie-in period once the discounted period ends which makes a huge difference on options to switch in a year's time...
>> Edited by iaint on Wednesday 4th January 11:26
minimax said:
Not much help but I found exactly the same thing. Ended up staying on with existing lender on a worse deal simply to avoid the fees.
It was a big contrast to being FTB when the lenders were bending over backwards to get my business.
best remortgage 2 year fix out there after a quick (10 second
Thanks Tom, YHM too. I spotted this deal but again, the fees make it more expensive than what I have been offered so far for a 2 year deal. I have sent me details over to you.
Looks like I am not alone then with my current experiences and that lenders are finding ways of retaining current business more than chasing new customers looking to remortgage.
vee said:
Indeed. The mortgage companies are cottoning on to "rate tarting" and it is becoming less attractive to change now. In fact, this time we went with a new product with our current lender as it proved to be a reasonable deal (despite them loading us with a ton of fees, charges, etc.)
^^^^^^
What he said.
Stayed with our existing lender.
Me too, except the new deal was £80 less a month
This was with the Coventry.
The best way is to go to an independent financial advisor,some deals are only done through them.I just remortgaged with Northen Rock at 4.79% fixed for 3 years, you pay £550 upfront for an evaluation fee, but you get £1000 cash back upon completion to help towards the fee you just paid and your solicitor's fees too.You won't find this deal on the net, I tried.
Ring any independent financial advisor and insist on the Northen Rock deal.(sometimes they are more driven by commission, be warned).
Ring any independent financial advisor and insist on the Northen Rock deal.(sometimes they are more driven by commission, be warned).
allnighter said:We had a similar deal with Northen Rock as existing customers, but I think it was 4.59% for 2 years. The fees came to £900-odd though, once all had been added on. You do get the £1000 "help with fees" but, crucially, if you move products within 4 years (I think it is) then you have to pay it back. So really it is only deferring the fees, because you'd be a fool not to move products again when the discount period finishes.
The best way is to go to an independent financial advisor,some deals are only done through them.I just remortgaged with Northen Rock at 4.79% fixed for 3 years, you pay £550 upfront for an evaluation fee, but you get £1000 cash back upon completion to help towards the fee you just paid and your solicitor's fees too.You won't find this deal on the net, I tried.
LOt of good general advice [urlhere|www.moneysavingexpert.com/mortgages[/url]
especially the pdf download
especially the pdf download
allnighter said:
The best way is to go to an independent financial advisor,some deals are only done through them.I just remortgaged with Northen Rock at 4.79% fixed for 3 years, you pay £550 upfront for an evaluation fee, but you get £1000 cash back upon completion to help towards the fee you just paid and your solicitor's fees too.You won't find this deal on the net, I tried.
Ring any independent financial advisor and insist on the Northen Rock deal.(sometimes they are more driven by commission, be warned).
sorry to disappoint dude but the deal you described is available to all customers regardless, you pay either a low rate and an arrangement fee plus val fee or a no arrangement fee and a higher rate plus val fee then you get the £1,000 back on completion as a 'help with costs' cashback. there is an option upon application to not take the £1,000 but I can't see why you wouldn't take it. beware though, there is a 3 1/2 year clawback on it though so if you move away from Northern Rock or even remortgage with them again if your initial term ends within the 42 months then you will have to repay the £1,000 cashback
it is true that there are many 'exclusives' that are only available through mortgage brokers though and there is no way to get them on the high street
minimax said:As I said.
you get the £1,000 back on completion as a 'help with costs' cashback. there is an option upon application to not take the £1,000 but I can't see why you wouldn't take it. beware though, there is a 3 1/2 year clawback on it though so if you move away from Northern Rock or even remortgage with them again if your initial term ends within the 42 months then you will have to repay the £1,000 cashback
Incidentally, whilst in theory you can elect not to have the £1000 cashback, they actually add it on anyway. I know - I tried to opt out as I know that I will be subject to the claw-back and wanted to essentially pay the fees now rather than later. But they just gave me the £1000 anyway.
>> Edited by JonRB on Wednesday 4th January 12:00
TUS 373 said:
Our current mortgage deal expires next month so I am trawling around looking for good deals again using people like Charcol online and moneysupermarket. Although I can find plenty of mortages at a good rate, they come with staggering costs attached to them in terms of application fees, valuations, legal etc etc. I have been offered a 2 year fixed rate of 4.99% and no fees if I stay with our current lender, the Woolwich but that still puts our monthly payments up a little (currently on 4.79%), a trend that I am trying to reverse. I can't seem to find anything better due to the £1,000 of fees that they come with!
Any mortgage experts out there care to share what types of mortage (BTW, I want interest only) are proving to be the best deals and what feelings are about what interest rates will do over the next 2 years now the housing market has slowed down?
4.99% is fairly good at the moment. You will struggle to find a lower fixed rate with no fee's.
It is worth considering how much a lower rate will save you in the long run, and see if it is worth paying a fee.
Interest rates are widely speculated to come down again in the near future, however, if you don't fix your mortgage for 2 years, there is the possibility they will rise again within that period and you lose out.
Couple of lenders were doing tracker mortgages with NO TIE INS, this may be good for you as you would be able to remortgage without penalty if interest rates went up.
To be honest, if a .5% hike in rates is giving you the jitters, I would plump for a fixed rate... rates can't get much lower and yes, you may miss out by being .5% above the base rate, but as long as your comfortable with payments when you take it out, you have the security of knowing that the payments will not vary
It all depends on your situation. If you like I can put you in touch with a couple of good brokers, as I don't do mortgages anymore. It will depend where you are in the country as well, as most guys like to meet their clients! Just to check they are not Nigerian scammers
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