remortgage costs?

dianahillary5 · Joined: 24 Jun 2008 Posts: 1 1.34 Dollars($)

I need remortgage, I don't see any other option, but as my financial situation is bad, I'm afraid to do it even worse. That's why I compare different remortgages - badcredit-mortgages.org.uk - I saw a lot here, can you say if it's correct? I talked to different lenders, but still I'm not sire if I counted all costs. I don't want that remortgaging either to a new deal or an entirely different provider will lead to hundreds, if not thousands, of pounds of charges or at least to count all in advance.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi dianahillary,

Welcome to the forum.

If you need to go for a remortgage then you will have to pay hundreds if pounds as fees. Some lenders may offer to pay the costs themselves or reduce the costs to entice you but in that case the rate of interest will be higher. However you have consulted with different lenders and that is good. But I think you should consult with your present lender first.

Best of luck,
Larry

john · Joined: 23 Jun 2008 Posts: 36 17.30 Dollars($)

what you have to wiegh when you look at costs of the loan that not a lot of people do is total payback dianhillary. lets say the broker is charging you more than the guy down the street. both loans lets say are for 30 years. lets say the brokers payments on a fixed rate are 1000 per month. the banks (guy down the street with lower costs) payments are 1100 per month but lower fees. now do this. multiply the 360 payments you would make to both loans by the payment (360x 1000 and 360 x 1100) you will see that the banks loan actually costs you more in payback. so what does the extra fee from the broker really have to do with it? well i know here in the states the fees are somewhat tax deductuble, so not only can you write some of them off you would also be paying back a cheaper loan with the broker (remember the math above) even with their higher costs. If you plan on moving soon then what you want to do is use a mortgage calculator (hint there are some on this website) and you can see where your balance would be after a few years or whenever you plan on moving. Some people would not agree with what im saying here but if you think about the extra cost taking from your equity just think about whats giong on here in the states. whos to say you cant lose or gain equity overnight? its all about the house sales. Me persoanlly? i would much rather get the lower rate/ payment from a broker and pay an extra 2k to get it knowing ill pay back much less in the long run. anyhow i hope that helps.

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