Mortgage bulletin for week commencing Monday 7 April

Posted 7 April 2014

Remortgaging can be a minefield. Whether you are looking for a better deal on your existing borrowing, or looking to borrow a little more against the value of your property, what should you look out for when you remortgage?

While fixed-rate and discounted products seems good value, tracker mortgages can represent some of the best deals of their kind over the full period of the mortgage.

HSBC is currently offering a Lifetime Tracker Fee Saver mortgage for loans up to 70% loan-to-value (LTV) at 2.29% above the Bank of England base rate (BBR), with no booking fee and no early repayment charges. Paying a booking fee of £999 will reduce the interest rate to 1.99% above the BBR for the term of the loan. For loans of up to 90% LTV, the rates rises to 4.19% above BBR with a booking fee of £999 or 4.59% above BBR with no booking fee.

Santander has a 60% LTV tracker at 1.99% above BBR with no booking fees and no early repayment charges, while Woolwich is offering its Lifetime Tracker product at 2.99% above BBR with an application fee of £999 and no early repayment charges.

Other types of remortgage include the popular five-year fixed-rate products. The Chelsea Building Society is offering a five-year fixed-rate deal at 2.94% for loans to 65% LTV, moving to 5.65% after the fixed period, while HSBC's 90% LTV five-year fixed-rate deals include a Five-Year Fixed Standard product at 4.69% with a booking fee of £999 and 5.09% with no fee. Both deals revert to the standard variable rate, currently 3.94%, after the fixed period.

Some homeowners chose to remortgage to move into self-build. These result in the mortgage payments being staged as building work progresses. Progressive Building Society offers a 60% LTV two-year 1% Discount Tracker Self-Build product at 3.75% variable for 24 months, then 4.75% variable thereafter, or its 0.25% Discount Tracker Self-Build at 4.5% variable for 24 months on loans up to 75% LTV, raising again to 4.75%.

The Scottish Building Society is offering 5.99% variable for 36 months on its "V3 Year SVR + 70% Self Build" product, while a two-year fixed-rate 65% LTV with Norwich and Peterborough Building Society will cost 2.04% for the first two years with £345 fees, reverting to 4.6% thereafter at current values.

Halifax has a handsome two-year fixed-rate product at 2.39%, fixed for two years before reverting to 3.99% at 60% LTV, and The Nat West two-year fix is currently 1.95%, rising to 4% after the fixed period with a £995 product fee, free valuation and basic legal work.

Skipton Building Society has a two-year fixed-rate product at 2.68% at 60% LTV with no fee, rising to 5.49% after the fixed period. Alongside is the option to pay a fee of £995 with a fixed-term rate of 1.99% with free legal and valuation pack.

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