Mortgages!! Help!!

[nykkieberry]

I am at the end of my discounted period and I want to move to a fixed rate. Where can I get (real) independent advice and how do i weigh up the redemption penalities/arrangements fees/cash back/interest/term etc. to get the best deal?

[BenDToy]

This is a minefield and I recommend getting a mortgage broker to prepare some options for you. For what it's worth I suggest that a fixed rate should only tie you in 'til the end of the fixed rate period. Penalties normally get lower as you get nearer the end of the fix but can be very high early on. Consider carefully the chances of you moving or changing during the fixed period and take this into account when choosing the period - normally 2 -5 years. Arrangement fees are usually not a major differential but can be as much as about �300. Unless you desperately need the cash, I believe cashback is just a gimmick, and you just end up paying for it in some other way. You may also want to consider what the lender's variable rate is, because that is what you would be paying if you stayed with them after the fixed rate ends. Generally for a remortgage you can expect that the survey and legal fees will be paid for you.

[BenDToy]

Sorry I didn't answer part of your question. I find that independant local estate agents usually have a "pet" mortgage broker who they will recommend. Don't ask in a chain because they are often owned by banks or building societies.

[nykkieberry]

Thankyou!! I've been looking at Northern Rock but it has a tie in period of 6 year for a fixed rate of 3 year term. It's so complicated!!!! This is very helpful though!