New A & L 5 Year Fixed Rate 4.99%

divadee

Alliance and Leicester have launched a new 5 years fixed rate mortgage off 4.99%.

10% overpayment allowed
95% LTV
£395 arrangements fee

There are some downsides 6 months interest early redemption payment and interest is calculated monthly not daily.

A good deal if you need to be certain of mortgage payments.

Newcastle Building Society are also going to be doing this from Monday but no overpayment facility and only 90% LTV.

divadee

If you are after a 2 year fixed A & L are are doing a 2 year fixed with 4.79%

I think the same terms as above but check with them.

Robert_Sterling_3

interest is calculated monthly not daily.

What would this add to the amount you paid over five years if anything?

MarkyMarkD

The 4.79% 2 year is the same fees etc as the 5 year 4.99%.

Annual rest interest costs nothing extra at all if you are on "interest only" and don't over-pay.

If you are on repayment, it costs a few pounds extra a month - equivalent to around 0.05-0.10% - less in the first few years and more as time goes by. It's not as big a deal as is commonly made out, particularly over the first few years of a new mortgage.

Robert_Sterling_3

If you are on repayment, it costs a few pounds extra a month - equivalent to around 0.05-0.10% - less in the first few years and more as time goes by.  It's not as big a deal as is commonly made out, particularly over the first few years of a new mortgage.

Not a big deal is what I was hinting at but in respect of monthly rather than daily interest being charged which is what Divadee actually mentioned.

MarkyMarkD

Ah well - A&L is annual, not daily actually, hence my comment. But it still stands - there is a few £ difference a month between annual and daily, and a few pence difference a month between monthly and daily.

Almost always the impact is less than the difference in rate between any two products you are comparing - and it makes no difference at all what interest rate basis applies if you are on interest only (like I am)

Robert_Sterling_3

It does not make much difference to me either as I only owe £1 on my mortgage although I may be being taken for a ride, not by my horse, as I have to get my building insurance from the mortgagee.

MarkyMarkD

Why don't you redeem then, and insure more cheaply? Is it just so that the lender can care for your title deeds "free of charge"?

Robert_Sterling_3

Inertia mainly if not entirely.

Robert_Sterling_3

Inertia mainly, if not entirely, although they do invite me, on a daily basis, to borrow about £500,000.
I kid you not.