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2 yr fixed 3.99% with no overhang?

donna
donna Posts: 165 Forumite
in Mortgages & endowments
Hi,

after reading Martins Mortgage page i visited the best buy tables mentioned and there is a 3.99% mortgage advertised but no mention of whos it is.

Can anyone help as it just what i have been looking for?
«1

Comments

  • meanmachine_2
    meanmachine_2 Posts: 2,624 Forumite
    Part of the Furniture Combo Breaker
    Doubtless it includes a charge of 1.5% of the money being borrowed.

    Work it out for yourself - it's probably more expensive than a standard 4.4% fix.
  • stanmoresaver
    stanmoresaver Posts: 614 Forumite
    meanmachine wrote:
    Doubtless it includes a charge of 1.5% of the money being borrowed.

    Work it out for yourself - it's probably more expensive than a standard 4.4% fix.

    Eg: £100,000 loan. Interest only @3.99% £3990 pa X2 £1500 Arr fee £9480 total cost (excluding legal, valuation fee costs and interest on arr fee if added)

    Same loan at 4.45% £4450pa X2 £599arr fee (free legals and val) (excludes less interest on smaller arr fee if added) Total cost £9499

    Therefore, proof that the rate sounds great but the deal doesn't stack up!
    I am a fee charging WoM Mortgage broker.
    I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.
    Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:
  • dwsjarcmcd
    dwsjarcmcd Posts: 1,857 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It's Northern Rock. The fee is £1500, that is how the rate is good!
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    There are other 3.99% deals also
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • luckyfool
    luckyfool Posts: 1,683 Forumite
    The Northern Rock 3.99% Fixed rate doesnt have a £1500 fee, it's 1.5%, so bad value whatever the size of your mortgage.

    Bank of Scotland on the other hand have an intermediary exclusive at the moment at 3.99% tracker for 2 yrs with a £1499 fee and free legals and vals. Works out very well for anyone with a mortgage over £220k approximately.
  • bbruce
    bbruce Posts: 369 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    herbiesjp wrote:
    There are other 3.99% deals also
    These headline rates can be misleading with the variety of charges not included.
    Many quote a "rate for comparison"; I assume those that don't are bad value. Is this a true basis for comparison?
    Learn from the mistakes of others - you won't live long enough to make them all yourself.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Bbruce

    Why are they misleading? Go to the lender website and get the details they are all there

    Call the lender and ask them for an illustration - they will provide you with the details

    Why is that misleading?

    If you think illustrations are misleading go to the FSA and tell them about it
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    A number of these 3.99% rates around, some exclusive to certain broker/ clubs ...
    its horses for courses , need to do a full number crunch ( you are your broker) to decide which is best , - if indeed any 2 yr fix is suitable for you circumstances.
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    bbruce wrote:
    These headline rates can be misleading with the variety of charges not included.
    Many quote a "rate for comparison"; I assume those that don't are bad value. Is this a true basis for comparison?

    lenders adverts include a " The overall cost for comparison is... X.X% APR "
    this will indeed include certain fees in the calculation, however it also makes certain assumptions about the follow on rate fro the rest of the term , so some people don't consider this a great way to compare deals

    Brokers adverts will usually have to also include this calculation if promoting a specfic deal, or quote a typical figure if their advert is aimed at certian sectors ( for example clients with credit history problems )

    - although obviously when actually transactioning a case the illustration gives this information
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • keefrto
    keefrto Posts: 281 Forumite
    Hi, I started a thread last year with the £38k mortgage and offset thing. Well we used the offset money for other things and have still got the £38k mortgage, I am looking for a low upfront fees, better rate mortage than current (5.7%) with Bristol and west. Either fixed of discounted say for 2 yrs. overall comparison of Apr 5.6 5.7% in the end.
    Have been to charcol online and there are some good stuff, L&C no use. Can you guys assist?
    Keith
    Currently 4 me its Rogers Contract cell phone, REBTEL.COM is the best mobile making and receiving calls to/from UK and Canada:beer:
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