Been Offered 4.99% with no fees...%%% up or down?

loveboat1234

As I could not find any decent 5 year mortgage I have contacted my bank directly and as a client they have offered me 4.99% with no fees , no solicitor or evaluation fees as this is just a rate change . Total mortgage is 65000 on a shared owership . I know that there are some lenders on 4.59 and 4.79 but they have fees and solicitor cost + evaluations and administration fees . Now the BIG questions :

Should I go for 2 year , 3 years or 5 years?

Penalties are the usuall 3% till 1% on the last year.

Looks like interest are going higher in the next 3 years ? my mortgage has already gone up by £50 in the last 12 months and now it is another £18 as my current rate is 4.48 .

Any advice would be appreciated .

THANKS THANKS

Frank

KTF

I would do the sums before signing up. For example, Nationwide have 4.79 over 5 years with just a £199 fee and free legals. With the fee included this will be cheaper over the 5 year term than the 4.99 deal.

65k @ 4.99% = £396.39 a month

65k @ 4.79% + £199 fee = £389.01 ex fee (£442.80 saving over term) or £392.33 taking into account the fee (£199/60) spread over the term (£243.60 saving over term).

Note that this is just an example and other lenders may offer deals that may better suit your needs.

It might not be a big saving but its a saving nontheless.

loveboat1234

KTF wrote:

I would do the sums before signing up. For example, Nationwide have 4.79 over 5 years with just a £199 fee and free legals. With the fee included this will be cheaper over the 5 year term than the 4.99 deal.

65k @ 4.99% = £396.39 a month

65k @ 4.79% + £199 fee = £389.01 ex fee (£442.80 saving over term) or £392.33 with the fee over the term (£243.60 saving over term).

Note that this is just an example and other lenders may offer deals that may better suit your needs.

thanks for your prompt reply but I think you need to consider that other lenders require a proprety evaluation and solicitor cost to be added . I recall that my solicitor charged me £400 for the lot and evaluation was £130.
I appreciate your help......

thanks

Frank

KTF

I moved to the Nationwide last month and only paid the product fee. Everything else was handled by their lawyers and cost nothing because they have a 'free to move to us' package.

Joe_Bloggs

Nationwide pay the legal costs and surveyor costs in the case of a remortgage. You have to also consider the redemption costs of saying farewell to your existing lender.The longer you sign up for a deal the less often you have to pay administration fees. I remortgaged to Nationwide in August.
Who are you with now and why are their rates going up ?
J_B.

loveboat1234

Joe_Bloggs wrote:

Nationwide pay the legal costs and surveyor costs in the case of a remortgage. You have to also consider the redemption costs of saying farewell to your existing lender.The longer you sign up for a deal the less often you have to pay administration fees. I remortgaged to Nationwide in August.
Who are you with now and why are their rates going up ?
J_B.

Currently I am with Barclays ( woolwich ) and the 2 year disocunt rate is due in jan 2006 so not much to go.

cheers

mummytofour

shared ownership mortgages are not easy to get and not all lenders do them.