Insolvent

What do I need to consider when I remortgage my property this year?

My two year 4.9% fixed rate deal with Halifax is up this year. This will be the first time I have remortgaged. What do I need to consider and what are the likely one off charges or expenses associated with a remortgage. Any advice gratefully received. Thanks. UK answers only.

Public Comments

You'll definately have closing cost associated anytime you refinance something. The refinance cost will probably run you around $1500 per $50,000 that you refinance.
Before you re-fi, get out your note and read it then check with your lender to see if your payment is going up. If your rate is tied to something like the 1-year treasury rate that is sitting at about .44 percent and you add a 2.75% margin to it and round it up to the nearest 1/8 percent, your rate will be 3.25%....not too bad if it does not adjust for a year. Your new rate may be based on the NEW loan value, not the original value on which you have been paying so again your payment might go down a little. If your rate will go up for whatever reason, unless you are sitting on a pile of $$$ you will probably roll the re-fi expenses into your loan thereby INCREASING the amount you owe on the property. (and starting the 30 year cycle all over again) Is the property worth increasing the amount you owe on it? How long do you intend to stay in the property? If you are going to put it on the market in the next couple of years it may not be worth the re-fi expense. Your lender will not have this discussion with you as they make their $$$ by refinancing loans and after all, they want to close as many loans as possible. Good Luck!
If you want UK answers only, which is smart, go to the bottom of any page and you will see abbreviations for many countries. Click on the one marked UK.