5yr vs 10yr fix?

sevenhills · 28 April 2017 at 6:09PM

clairebeth wrote: »

Is there a reason you want to go with Coventry instead of fee free First Direct?

I have a preference for building societies, I have a hunch they are more on the side of the person, Coventrys fee is I believe £8

getmore4less · 28 April 2017 at 7:15PM

sevenhills wrote: »

I am hoping to get a 10 year fixed mortgage, next month, from the Coventry.
A couple of years before rates nose dived, no one predicted it, and no one can predict when rates will be 5%+
I am a right to buy, £35k, over 12 years.

sevenhills wrote: »

I have a preference for building societies, I have a hunch they are more on the side of the person, Coventrys fee is I believe £8

end of life mortgage aiming for 10y with a 10y fix go for the one that is cheapest overall, you won't be changing again.

Dandytf · 29 April 2017 at 1:48PM

clairebeth wrote: »

That's true, although I was a first time buyer in 2009 and the reduced rates weren't actually passed onto the public for ages, 6.04 :-( ! However, you are completely right, no one can predict the future, but it's reasonable to try and pay less in the meantime to be in a better position in the future!

I moved from prevous flat 2009. Svr 2.25%
When base rate dropped .05%-my move cost me 3yrs@6%:D

Thankfuly I'm enjoying my recent flat past few years, as you advise I would never have guessed rates staying -1 for a few years.

Looking foward to taking a new nat wide mtg when my existing 5yr fix@5% fnishes Aug.

3 months to apply is fast approaching.

The 5/10 year fix choice is mind bogling at times.
Both terms offer affordable payments.

Cant honestly think that rates will be this low in 5 years -though I was wrong the last time as well.

Think i'll go 10 year fix-and hope rates dont' fly sky high!

clairebeth · 29 April 2017 at 2:01PM

I agree, I don't think five year rate is right for us. I think we are going to wait until I'm closer to finishing maternity leave and EITHER, fix on a very low rate for two years, save £3000 on our current rate, get ahead and have 60% ltv on two years time, or fix for ten years. We will perhaps know more in a couple of months.

Dandytf · 29 April 2017 at 2:26PM

clairebeth wrote: »

I agree, I don't think five year rate is right for us. I think we are going to wait until I'm closer to finishing maternity leave and EITHER, fix on a very low rate for two years, save £3000 on our current rate, get ahead and have 60% ltv on two years time, or fix for ten years. We will perhaps know more in a couple of months.

You are very knoweldgable with your options.

I 'cant be bothered' switching every 2 years-though it could make financial sense.

Think play it safe is simple choice for me.

Even the trackers don't look as reasonable as they were past 5 yrs (dependent of course if rates rise)

Good luck makng your choice;)

clairebeth · 29 April 2017 at 2:50PM

Thank you! You too!

I'm not that knowledgeable, hence why I ask for advice here! We wouldn't normally go for a two year fix, being 'play it safers' too. But we are currently three years into a five year fix, and the two year fix is the option that makes ditching that fix most attractive.

clairebeth · 11 July 2017 at 7:40AM

Got a text from First Direct to say our 2.64% over 10 years with no fee and unlimited overpayments has been approved today! I feel this is the right thing for us, and feel secure, which is important! I will try to hold on to this feeling if I see the rates plummeting again!

BigBus2017 · 4 September 2017 at 8:38PM

Hello and congrats on ur mortgage offer from First Direct.

I wanted to find out FD mortgage process. I have started a remortgage move from halifax to First Direct (its been 18 days)
This is my first remortgage move.

Time line so far

18/08/17- Called First Direct for a remortgage, call handler took all my income, outgoing, work info and property info. And was told iv passed the affordability and credit search and a mortgage advisor would contact me to book an appointment for a advised mortgage interview. In the mean time i needed to email via FD online portol -3 months pay slips, 3 months bank statements and my last 2 years p60. All sent over same day. (Call lasted 1hour)

21/08/17- Mortgage advisor calls to book an appointment for the 23/08/17.

23/08/17- Mortgage advisor calls and goes through my income and outgoings in more detail and asks few details on my bank statements transactions etc
Online valuation is satisfactory
At the end of the call they advise me I would get a call back in the next few hours for a decision
(Call lasted 1h25m)

An 1h later Im told iv been accepted and since my recommended mortgage offer is a fee saver I can book/save the rate immediately. They also wanted my solicitors details since I declined their own recommended solicitors.
Im then told i should receive a declaration letter to sign and return and in the meantime I should send a copy of my passport via FD webcam for quicker process.

The next day I receive a letter for a copy of my signature for their record.

25/08/17- I received mortgage advice report

26/08/17- I received in a black envelope with the words everything's in motion which contained the declaration and agreement form for me to sign and return.

30/08/17 - I received a letter outlining customer instructions.

04/09/17- received a call from FD asking me they needed to call my work place to speak to me or I call from my work telephone and speak to them for work verification.
I managed to call them from my work telephone and they verified it on their systems.

I found that a bit strange after all i have provided all my the documents they have asked for. Any they did tell me they have everything now and there will be one more final checks; Im guessing the underwriters is what they meant.

Is this the same process you had to go through and what was ur process like?

Any information will be appreciated

Jay

clairebeth · 4 September 2017 at 9:53PM

Hi, yes, that's pretty much identical to ours. Except the phoning from work thing, but we work for the NHS and the city council, so maybe they get people to do that for smaller workplaces or something?

After first contacting them in th middle of May, we locked in the deal on the 4th of June. Valuation 21st of June, I think.Then mortgage was officially approved on the 10th of July. However, we were away until the 28th so didn't send the solicitor paperwork back until the first week in August, which then got lost in the post (!), so then had to do it again and get someone to sign it etc, so that was sent back two weeks ago (to their appointed solicitor), so HOPEFULLY it will all go through this month! It sounds like it has taken a long time, but really, any delay has not been the fault of first direct or the solicitor. I had to faff around getting a letter from work about maternity leave, we needed a physical valuation, and then we went on holiday and then the stuff got lost in the post! But we are very happy with their service. Love that when you phone them someone answers the phone, it's not a machine! We remain happy with the deal that we have locked in.

BigBus2017 · 6 September 2017 at 6:04PM

Thanks for sharing your experience, Iv just call the First Direct mortgage team to get an update and was told the application has been sent to the underwriters today and I should get a response in 48h by the end of Friday. If everything is ok I should get a text message or if they need more information they will call me.
Two sleepless nights now

Btw iv applied for the fee saver 5 year fix @1.84.

5yr vs 10yr fix?

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