Remortgage Advice
Discussion
Hi guys,
Looking to remortgage as my current Halifax rate is 3.99% and my LTV is 80%.
Looking on moneysupermarket I have the following options:
Furness Building Society - Discounted Variable for 2 years - 1.89% then 5.44% - £1160 Fees
Vernon Building Society - Discounted Variable for 2 years – 2.2% then 5.1% - £900 Fees
Post Office - Fixed until 31/03/2016 – 2.28% then 4.48% - £999 Fees
HSBC – Fixed 2 year – 2.49% then 3.94% - £450 Fees
HSBC – Tracker for term – 2.59% - £650 Fees
So I am unsure who to go for as I have not really heard of some of the building societies. Should I be sticking to HSBC as they are huge? Is the 2.59% tracker for term better than the 2.49% for 2 years as rates are likely to rise in a couple of years and might be harder to negotiate a lower tracker rate? Or should I be taking the 2 year post office fixed and then remortgage in 2 years again?
Any advise would be appreciated please.
Looking to remortgage as my current Halifax rate is 3.99% and my LTV is 80%.
Looking on moneysupermarket I have the following options:
Furness Building Society - Discounted Variable for 2 years - 1.89% then 5.44% - £1160 Fees
Vernon Building Society - Discounted Variable for 2 years – 2.2% then 5.1% - £900 Fees
Post Office - Fixed until 31/03/2016 – 2.28% then 4.48% - £999 Fees
HSBC – Fixed 2 year – 2.49% then 3.94% - £450 Fees
HSBC – Tracker for term – 2.59% - £650 Fees
So I am unsure who to go for as I have not really heard of some of the building societies. Should I be sticking to HSBC as they are huge? Is the 2.59% tracker for term better than the 2.49% for 2 years as rates are likely to rise in a couple of years and might be harder to negotiate a lower tracker rate? Or should I be taking the 2 year post office fixed and then remortgage in 2 years again?
Any advise would be appreciated please.
Edited by Soupie69uk on Monday 31st March 12:21
Nobody can tellyou which is the best unless we know the value of the mortgage and the remaining term.
Add up your current payments over the next two years and then work out the cost of these products over the next two years (in luding the fees). See whi h one comes in cheaper.
As for rates, well the future is unknown, but there is talk of rates rising. It's a gamble whichever way you go.
Add up your current payments over the next two years and then work out the cost of these products over the next two years (in luding the fees). See whi h one comes in cheaper.
As for rates, well the future is unknown, but there is talk of rates rising. It's a gamble whichever way you go.
Outstanding figure is £112k sorry forgot to add this.
Was just going to remortgage interest only.
I worked out that the HSBC will be more expensive than the Furness and the others but thought maybe it would be better to go with a known name?
2 years at current rate will be £9288.
HSBC tracker for term plus fees is £6434.
Vernon plus fees £5820.
Furness plus fees is £5407.
Works out a saving from £115 to £160 per month so any will be better than my current one.
Was just going to remortgage interest only.
I worked out that the HSBC will be more expensive than the Furness and the others but thought maybe it would be better to go with a known name?
2 years at current rate will be £9288.
HSBC tracker for term plus fees is £6434.
Vernon plus fees £5820.
Furness plus fees is £5407.
Works out a saving from £115 to £160 per month so any will be better than my current one.
Soupie69uk said:
Outstanding figure is £112k sorry forgot to add this.
Was just going to remortgage interest only.
I worked out that the HSBC will be more expensive than the Furness and the others but thought maybe it would be better to go with a known name?
2 years at current rate will be £9288.
HSBC tracker for term plus fees is £6434.
Vernon plus fees £5820.
Furness plus fees is £5407.
Works out a saving from £115 to £160 per month so any will be better than my current one.
Interest Only at 80%??? No chance I'm afraid......Was just going to remortgage interest only.
I worked out that the HSBC will be more expensive than the Furness and the others but thought maybe it would be better to go with a known name?
2 years at current rate will be £9288.
HSBC tracker for term plus fees is £6434.
Vernon plus fees £5820.
Furness plus fees is £5407.
Works out a saving from £115 to £160 per month so any will be better than my current one.
HSBC is 75% and you need a suitable repayment vehicle in place.
Post Office max LTV for Interest Only is 60%..........
Soupie69uk said:
Yes the product is available, but not in Interest Only.As I said, it 75% max LTV with HSBC for Interest Only mortgages and you need a repayment vehicle;
https://www.hsbc.co.uk/1/2/mortgages/payment-choic...
I would guess that none of the lenders you've listed will do IO at 80%.........
Soupie69uk said:
Thanks very much for your help. I was just going by the moneysupermarket.
I do not mind doing capital repayment and interest to get a cheaper rate. As in the long run I am saving.
No problem, as a sourcing system all comparison sites are piss poor. They simply cannot filter out the products that aren't applicable, so they just return all rates and let you spend the next few weeks applying to a lender who was never going to lend in the first place. They can get away with it though as it's a non advised service.....I do not mind doing capital repayment and interest to get a cheaper rate. As in the long run I am saving.
Yeah I have found that before with electricity comparison sites too.
I will just swap to a repayment so I can get the lower rate. Just need to decide if I would like a 2 year fixed or 2 year variable or lifetime variable.
HSBC 2yr fixed 2.49% - £500 fee - £502/month - 2 year cost £12,698
HSBC lifetime tracker currently 2.59% - £500 fee - £508/month - 2 year cost £12,842
Tesco 2 yr tracker currently 2.15% - £800 fee - £482/month - 2 year cost £12,586
I will just swap to a repayment so I can get the lower rate. Just need to decide if I would like a 2 year fixed or 2 year variable or lifetime variable.
HSBC 2yr fixed 2.49% - £500 fee - £502/month - 2 year cost £12,698
HSBC lifetime tracker currently 2.59% - £500 fee - £508/month - 2 year cost £12,842
Tesco 2 yr tracker currently 2.15% - £800 fee - £482/month - 2 year cost £12,586
If you want to overpay then the HSBC trackers allows unlimited overpayments.
Do you already have an HSBC current account as the product fee is for current account holders. For example:
2 Year Fix:
Current account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
Non-account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
2 year Tracker:
Current account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
Non-account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
You should take all the fees into account as sometimes having a slightly higher rate with a slightly lower fee can be cheaper over the term depending on the amount being borrowed.
For example: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
Also remember that if you go for a 2 year fix then you will have to go through the process again and rates may then be higher than the currently available 5 year fixes.
Do you already have an HSBC current account as the product fee is for current account holders. For example:
2 Year Fix:
Current account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
Non-account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
2 year Tracker:
Current account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
Non-account holder: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
You should take all the fees into account as sometimes having a slightly higher rate with a slightly lower fee can be cheaper over the term depending on the amount being borrowed.
For example: https://www.hsbc.co.uk/1/2/mortgages/products?pcod...
Also remember that if you go for a 2 year fix then you will have to go through the process again and rates may then be higher than the currently available 5 year fixes.
Edited by KTF on Monday 31st March 15:13
Yes I have a HSBC current account. I opened it as knew they offer mortgage discounts for their customers.
Legal and General have a variable 1.99% rate with a £250 fee which is a decent bit cheaper.
I expect rates to increase slightly over the next 2 years but don't expect it to be more and 0.5% so I think the 2 year deal should be ok.
Obviously that is a risk but no worse than my current standard variable rate of 3.99% which would no doubt increase to 4.49% anyway with the rate increase.
Legal and General have a variable 1.99% rate with a £250 fee which is a decent bit cheaper.
I expect rates to increase slightly over the next 2 years but don't expect it to be more and 0.5% so I think the 2 year deal should be ok.
Obviously that is a risk but no worse than my current standard variable rate of 3.99% which would no doubt increase to 4.49% anyway with the rate increase.
Soupie69uk said:
Yes I have a HSBC current account. I opened it as knew they offer mortgage discounts for their customers.
Legal and General have a variable 1.99% rate with a £250 fee which is a decent bit cheaper.
I expect rates to increase slightly over the next 2 years but don't expect it to be more and 0.5% so I think the 2 year deal should be ok.
Obviously that is a risk but no worse than my current standard variable rate of 3.99% which would no doubt increase to 4.49% anyway with the rate increase.
Legal & General don't do mortgages, its a reference to the L&G Mortgage Network meaning, it's a broker product.Legal and General have a variable 1.99% rate with a £250 fee which is a decent bit cheaper.
I expect rates to increase slightly over the next 2 years but don't expect it to be more and 0.5% so I think the 2 year deal should be ok.
Obviously that is a risk but no worse than my current standard variable rate of 3.99% which would no doubt increase to 4.49% anyway with the rate increase.
We've got access to it if you are interested in that product.
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