I’m currently dipping my toe into the murky waters of remortgaging.
We’re looking at remortgaging to free up about £40k for home improvements, which would give us about a 65% LTV ratio. We’re currently on a hodgepodge of old mortgages – one is ported as it’s 0.1% over base for about 50%, the second is about 2% fixed and expires next year and is for about 45%, and the third is a small drawdown we used to buy a garage at the rear of the house.
I have spoken with a local mortgage broker, who has come up with two potential deals; one, a 2-year fixed at a rate of 1.24%, or a 5-year fixed at 1.91%. The monthly payment is a couple of hundred quid less than we pay currently on the 2-year deal, and is about what we pay now on the 5-year one.
However, plugging those details into a comparison site brings up fixed 5-year deals at least 0.25% less than the broker resulting in a monthly payment of nearly £500 a month less than we pay now.
Is there any reason why these deals are so much cheaper (at least in the short-term)?
Is it simply a case of it’s a headline figure that, once you dig into it, is completely unattainable? (In the same way you get a rock-bottom car insurance quote but by the time you’ve filled in all the details, it’s several hundred pounds more..)