Hi

So we are due to remortgage for the first time since buying our house, currently on a 5% deal due to 95% help to buy.

Virgin Money seem to be doing good deals, the cheapest 2 year option with the Â£995 fee would bring our mortgage down Â£380 a month!

Anyway, the different between the 2 year fixed with a fee is Â£39 a month to the 2 year fixed without a fee. I make this Â£936 over 2 years so financially I am better off not paying the Â£995 fee as its cheaper not to bother?

I am umming and ahhing about going onto a 5 year deal but this works out Â£100pm without the fee and an extra Â£21pm with the fee.

Financially if we took the 5 year, I would pay the Â£995 as I would save a decent amount but on the 2 year, the math doesn't make it worth it.

Unless I am missing something?

Ta

### #2

196 views and no replies.

Surely this is a fairly simple question?

Its just about the numbers right?

I have no interest in paying a mortgage broker for something as simple as a re-mortgage, I just want to confirm my thoughts were correct.

Surely this is a fairly simple question?

Its just about the numbers right?

I have no interest in paying a mortgage broker for something as simple as a re-mortgage, I just want to confirm my thoughts were correct.

### #3

No. You need to know how much would be outstanding at the end of the fix and take that into account as well as the rate/interest and fees.

### #4

need more details like

the rates

how much you are borrowing

full term

how much you will/want to pay.

the rates

how much you are borrowing

full term

how much you will/want to pay.

### #5

On the 2 year fixed.

Value is Â£265k

Borrowing Â£208.5k

Â£995 fee at 1.68% initial followed by 4.54% standard variable. This is Â£910 per month.

Non fee is 2.08%, same variable and Â£949 per month.

The variable is 4.45% and even if rates rise say 0.5%, I would still be able to remortgage 2 years time and would still be cheaper than that variable they are offering.

If the variable is the same after the 2 years then surely the comparison financially is between the two initial values?

If the variable was say 3% ish and rates went up a little in the mean time, I may want to stay on the deal after the two years but I still think I will be better off remortgaging in two years again for a better deal.

Value is Â£265k

Borrowing Â£208.5k

Â£995 fee at 1.68% initial followed by 4.54% standard variable. This is Â£910 per month.

Non fee is 2.08%, same variable and Â£949 per month.

The variable is 4.45% and even if rates rise say 0.5%, I would still be able to remortgage 2 years time and would still be cheaper than that variable they are offering.

If the variable is the same after the 2 years then surely the comparison financially is between the two initial values?

If the variable was say 3% ish and rates went up a little in the mean time, I may want to stay on the deal after the two years but I still think I will be better off remortgaging in two years again for a better deal.

### #6

If you take the 2 year deal with or without the fee then please overpay as much as possible over the next 2 years.

Your Loan To Value could be 90/85 or even 75% if you overpay every month !

Your Loan To Value could be 90/85 or even 75% if you overpay every month !

### #7

Financially if we took the 5 year, I would pay the Â£995 as I would save a decent amount but on the 2 year, the math doesn't make it worth it.

what maths are you doing?

If the variable is the same after the 2 years then surely the comparison financially is between the two initial values?

it is and the result is

2y fix owing after 2 years

Â£208,500 @ 2.09% Â£949pm Â£194,154.05

Â£209,495 @ 1.68% Â£949pm Â£193,502.05

around Â£650 better off paying the fee.

if you want to just pay the fee and pay the normal amount based on 23y term

amount -rate -payment -owing -interest -total cost(with fee)

Â£208,500.00 1.68% Â£911.28 Â£193,393.01 Â£6,763.80 Â£7,758.80

Â£208,500.00 2.09% Â£952.14 Â£194,077.17 Â£8,428.52 Â£8,428.52

what maths are you doing?

If the variable is the same after the 2 years then surely the comparison financially is between the two initial values?

it is and the result is

2y fix owing after 2 years

Â£208,500 @ 2.09% Â£949pm Â£194,154.05

Â£209,495 @ 1.68% Â£949pm Â£193,502.05

around Â£650 better off paying the fee.

if you want to just pay the fee and pay the normal amount based on 23y term

amount -rate -payment -owing -interest -total cost(with fee)

Â£208,500.00 1.68% Â£911.28 Â£193,393.01 Â£6,763.80 Â£7,758.80

Â£208,500.00 2.09% Â£952.14 Â£194,077.17 Â£8,428.52 Â£8,428.52

### #8

“

196 views and no replies.

Surely this is a fairly simple question?

Its just about the numbers right?

I have no interest in paying a mortgage broker for something as simple as a re-mortgage, I just want to confirm my thoughts were correct.

Originally posted by laurieballard87

”

when you don't understand how mortgages work it could be money well spent.

### #9

What is the loan to value being assumed here?

Presumably it's lower than 90%?

Now seen post #5, sorry.

Presumably it's lower than 90%?

Now seen post #5, sorry.

### #10

Woops did 2.09% not 2.08% will fix when I get home.

edit

2y fix owing after 2 years

Â£208,500 @ 2.08% Â£949pm Â£194,113

Â£209,495 @ 1.68% Â£949pm Â£193,502

still over Â£600

edit

2y fix owing after 2 years

Â£208,500 @ 2.08% Â£949pm Â£194,113

Â£209,495 @ 1.68% Â£949pm Â£193,502

still over Â£600