remortage advice

wijcc · 1 May 2008 at 14:30

I am need of some advice with remortaging of these two options which is better

3 year fixed at 5.49% with a £995 arrangement fee

or a

3 year fixed at 5.69% with a £499 arrangement fee

Thanks in advance guys

platypus · 1 May 2008 at 14:31

Given that you know the total value of your mortgage, and monthly repayments, why don't you get a calculator and work it out?

gumbald · 1 May 2008 at 14:32

Yeah, we don't know whether it's for £1000 or £100000

wijcc · 1 May 2008 at 14:34

the amount is £125000 over 23 years sorry

Majago · 1 May 2008 at 14:38

Assuming you pay the fee as opposed to adding it to your mortgage and switch at the end of the fixed period then after 3 years you'll have paid:

Option 1 = £29,099
Option 2 = £29,637
Difference = £538

Calcs: (Option 1 = 808.31 * 12 * 3; option 2 = 823.25 * 12 * 3)

Taking fees into account (option 2 saves £496 in fees) the choices are pretty much the same but option 1 will work out £42 cheaper (assuming my maths is correct!)

scorza · 1 May 2008 at 14:38

What are the monthly repayments for each? Surely it's just a question of which one is the lesser?

Visage · 1 May 2008 at 14:39

First option is 808.31 pm
Second option is 823.25pcm

So over 3 years the second option is 537.84 more expensive.

So taking into account the arrangement fee theres pretty much no difference....

[TW]Fox · 1 May 2008 at 14:39

scorza said:
What are the monthly repayments for each? Surely it's just a question of which one is the lesser?

Well no becuase one has a higher arrangement fee.

platypus · 1 May 2008 at 14:40

scorza said:
What are the monthly repayments for each? Surely it's just a question of which one is the lesser?

Well I think he's trying to factor in which is going to be cheaper at the end of the fixed term.

But given those percentages, it surely makes more sense just to take whichever monthly payment you are more comfortable with. If theyre the same, take the one with lower fees.

scorza · 1 May 2008 at 15:19

[TW]Fox;11608045 said:
Well no becuase one has a higher arrangement fee.

I was assuming the arrangement fee would be added to the capital.

Bear · 1 May 2008 at 15:34

wijcc said:
the amount is £125000 over 23 years sorry

As a side note, I just completed on my remortgage on a 2 year fixed at 5.25% with £198 fees for £119000 over 23 years with First Direct.

teabagger · 1 May 2008 at 15:36

scorza said:
I was assuming the arrangement fee would be added to the capital.

In my experience you can either pay it as a lump sum of have it added to the mortgage loan. Generally they try and suggest that you add it as obviously they then earn the lump sum plus the interest for it.

Dolph · 1 May 2008 at 15:40

wijcc said:
I am need of some advice with remortaging of these two options which is better

3 year fixed at 5.49% with a £995 arrangement fee

or a

3 year fixed at 5.69% with a £499 arrangement fee

Thanks in advance guys

What's the rate after 3 years? Tracker or SVR? With the current climate, if you can get a tracker after your fixed rate, I'd go for that option, as the SVR's are quite a bit over the base rate, and probably likely to stay there for a while...

Mad old tory · 1 May 2008 at 15:41

I'd take the one with the lower arrangement fee with there being such a small difference between the two. No doubt it you invested the difference between the two arrangment fees you'd negate the difference with the interest anyway.

feriso · 5 May 2008 at 02:33

Bear said:
As a side note, I just completed on my remortgage on a 2 year fixed at 5.25% with £198 fees for £119000 over 23 years with First Direct.

Looking into this deal - how long did it take to get sortd from start to finish?

Bear · 7 May 2008 at 07:16

feriso said:
Looking into this deal - how long did it take to get sortd from start to finish?

It took about 10 weeks in total, to be fair to them though its taken so long as they have been inundated with new applications.