Mortgage rate - what would you do?

Alps

Well-known Member
Hi All, I'm torn on the following: my mortgage is up for renewal and I have a fairly good deal offered with my current lender - 1.36% + £999 fee for 5 years.

My question is, as the rates are so low right now, should I instead go for a 7 year deal which is 1.45% + £799 fee?

I have 23 years remaining and a 70% LTV.

What would you guys do?
 

Toon Army

Well-known Member
Guess there will be very little difference in the monthly payments with those rates. I would opt for 7 years depending on the ability to port the mortgage to another property should you wish to move house, early redemption fees and the ability to make additional payments. Interest rates will rise eventually.
 

domtheone

Distinguished Member
Yeh. Just a bit more i’d go 7 years.

I’m sure rates will be crazy low for the lifetime of your mortgage now (since the country is in such a mess) but feels good having peace of mind for so long.

Incredible rates really.

Helps keep house prices crazy high mind (one of the reasons we’ll never see high rates again any time soon).
 

Alps

Well-known Member
Thanks guys.

Toon Army good point about porting the mortgage. Something I need to look into. I'm happy where I am now, but would like to possibly love just before my little one starts secondary school.

Domtheone I have a feeling rates will begin to rise in 3 years once the whole Brexit fiasco begins to settle down (we'll still be in a mess though).

I'll call the bank tomorrow to find out porting the mortgage and cost of jumping to another lender. Although, I'd have thought if I stick with the bank for the new property thered be no fee or fine.
 

anticlaus105

Well-known Member
I'm coming up for renewal early next year and can't wait to get off 2.83%. I've seen 1.39% but who's offering 1.36%?
 

Alps

Well-known Member
I'm coming up for renewal early next year and can't wait to get off 2.83%. I've seen 1.39% but who's offering 1.36%?
1.36% is being offered by Barclays but only to existing customers I believe. But on this one, there is a £999 fee.

I still haven't had a chance to call them about the porting topic mentioned above. Will try and get that done this week. 1.45% for 7 years sounds good to me. But only if I can port.
 

Dony

Distinguished Member
I'm with the Halifax and coming to the end of my fixed term. They are currently offering 1.54% with no fee for either 3 or 5 yr fixed for existing customers.
My wife wants to meet with an independent advisor before deciding our next move.
 

reevesy

Distinguished Member
Was about to post the Halifax deal myself .....think it was roughly the same for new customers

Having sold my house and moved out .....and currently looking for a new place....im having the same dilemma.....fix for 2/3 ...or go five ....no fee deal

Longer is piece of mind but I just got hit with a grand penalty As I was fixed for 5 years.....in the past I've always gone 2/3

You never know when yours plans have to change
 

Alps

Well-known Member
I see NatWest are doing 1.28 %.....£999 fee but with a 250 quid cashback
How many years is this for? And existing customers only?
 

reevesy

Distinguished Member
...think it was 2 years ....it was available for everyone..

Seemed a good deal...works out at £750 for fees....pretty sure it was free valuation ...where as Halifax is 200 quid..so if you take that into account it's only £550...and I was told by the Halifax for the amount I want to borrow they probably wouldn't even visit the property !
 

reevesy

Distinguished Member
yeah the cash back softens the blow.

....with the amount i want to borrow against my deposit..does'nt always warrant the fee in my case.

though as said the 200 quid valuation that the halifax charges is a bit harsh

chatting to the lady on the phone these valuations and surveys are now taking quite a long time to be done

EDIT :the natwest deal was a 60% LTV and was 1.38% 2 year fixed
 
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Alps

Well-known Member
I'm a few days away from going with Barclays on 1.36% + £999 fee. I'm just hoping the rate drops before 1st October :D
 

reevesy

Distinguished Member
Yeah it's a dilemma.

...I put an offer in for somewhere sat morning...sath estate agent then went AWOL so will have to wait till Monday for a answer.

To complicate matters further if I go back to nationwide I will get a grand back ...but will have 2 deals going ..both on different rates and ending at different times
 

Alps

Well-known Member
Yeah it's a dilemma.

...I put an offer in for somewhere sat morning...sath estate agent then went AWOL so will have to wait till Monday for a answer.

To complicate matters further if I go back to nationwide I will get a grand back ...but will have 2 deals going ..both on different rates and ending at different times
Good luck for Monday morning :lesson:
 

happy_2008

Active Member
Yeah it's a dilemma.

...I put an offer in for somewhere sat morning...sath estate agent then went AWOL so will have to wait till Monday for a answer.

To complicate matters further if I go back to nationwide I will get a grand back ...but will have 2 deals going ..both on different rates and ending at different times

I was going to go through this but i couldnt contact my bank for 1 week and lost confidence that they would be able to process a mortgage port and apply for a 2nd mortgage. In the end to save the stress i am applying to a new lender and paying the ERC.
 

reevesy

Distinguished Member
Keep thinking it might be worth forgoing the grand and simplify it all at one low rate

Nationwide annoys me...looks there's only one person there who deals with mortgages and every time I ring she's 'not available till.....'

That woman has more time off than santa :rolleyes:

And I haven't forgiven them for refusing me an extra £7000 grand on the mortgage in order to move.........but the time it took me to get home I had a email saying I'd be approved for a 10 grand loan !!
 

happy_2008

Active Member
Keep thinking it might be worth forgoing the grand and simplify it all at one low rate

Nationwide annoys me...looks there's only one person there who deals with mortgages and every time I ring she's 'not available till.....'

That woman has more time off than santa :rolleyes:

And I haven't forgiven them for refusing me an extra £7000 grand on the mortgage in order to move.........but the time it took me to get home I had a email saying I'd be approved for a 10 grand loan !!

I was in the same boat considering the pros & cons but then decided to move. By having two mortgages with the same bank you're effectively tied to them until you can line up the two deals in future which is easy if the deals start in similar months.
 

Alps

Well-known Member
Yeah it's a dilemma.

...I put an offer in for somewhere sat morning...sath estate agent then went AWOL so will have to wait till Monday for a answer.

To complicate matters further if I go back to nationwide I will get a grand back ...but will have 2 deals going ..both on different rates and ending at different times
So, how did it go?
 

anticlaus105

Well-known Member
Can't wait to remortgage. Can apply 3.5 months early, so mid dec, if staying with natwest. Hopefully rates will continue down. Sadly new rate won't kick in until April though :(.
 

reevesy

Distinguished Member
Yeah need to take advantage of the stamp duty break which will end in march ...

well sellers won't drop a penny.....and I'm not paying full asking price.
.I've nothing to sell so thought they'd drop a couple of grand for a quick sell
Bit tight of them if you ask me but there you go..

Nationwide have finally been back in touch will probably have a over the phone chat .. Saturday.
 

happy_2008

Active Member
Yeah need to take advantage of the stamp duty break which will end in march ...

well sellers won't drop a penny.....and I'm not paying full asking price.
.I've nothing to sell so thought they'd drop a couple of grand for a quick sell
Bit tight of them if you ask me but there you go..

Nationwide have finally been back in touch will probably have a over the phone chat .. Saturday.

May have to pay asking price providing the price of the house is above the FTB threshold in Apr. Guess its finding a balance.
 

reevesy

Distinguished Member
Yeah ...was hoping potential buyers would be cooling off now but doesn't look like it..one came on Rightmove Sunday night...I went and had a look Monday afternoon....sold for asking Mon evening
 

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