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Is re-mortgaging still worthwhile? Page 2

A case in point is Birmingham Midshires. At the moment Birmingham Midshires

Mortgages. Encouraging stronger personal economic growth: You have to shop around for a good internet rate whether it be fixed or adjustable (variable).
ReMortgaging is it still worthwhile: Rate Tart is the name coined by the mortgage industry for borrowers who switch mortgage lenders chasing lower interest rates. Call them Rate Tarts if must, but they'll be the richer for it!
Mortgages. Higher Lending Charges are outrageous.: Higher Lending Charges are often charged if your mortgage is 90% or more of your property's value. We think the charge is a form of profiteering by the lenders and should be abolished. This article explains why.
Mortgages. Exit fees to be capped.: After years of lenders having a free hand to increase exit charges, the FSA steps in to restore fairness for consumers. This article explains.
Mortgages. Short term advice: There are some new lower rate “lifetime” home loans coming onto the market. How do they fare against the even lower rate “shop around” options?

offer a two year fixed mortgage deal at 3.89%. 3.89% sounds a bargain wait till you read the small print – they've jacked up the arrangement fee to a giant £1,499! If, on a £100,000 mortgage, you amortise this arrangement fee over two years at £749.50 per year, it's equal to an extra 0.75% on the headline interest rate.

So, if you think it might be worthwhile to re-mortgage, do some homework. Start by working out the costs of switching your mortgage. Remember to include absolutely everything. Include the legal fees to change the mortgage (usually around £350 on a £100,000 mortgage), the arrangement fee (typically £500), the valuation fee (typically £250 for a £100,000 mortgage), possibly a booking fee (£50?), and check whether you're subject to any early repayment penalties from your existing lender. If so add them in too.

Now get on the old dog and bone to your existing lender.

Tell them know that you are considering moving for a cheaper mortgage. Unless you put them under pressure, your lender is likely to work on the basis that, provided they offer you reasonably attractive deal, you'll be happy to sit tight and avoid the cost, time and trouble of re-mortgaging. So shake them up. Make them compete. If your current mortgage lender simply offers you their normal variable rate they don't deserve your business!

Armed with all this information you can then accurately assess whether you'll save money by re-mortgaging. If savings are to be made by switching, go ahead.

Call them Rate Tarts if you will, but guess who'll be all the richer for it! Re-mortgagors are just playing the market by it's own rules!