2 Year Fixed Deal Mortgages from Halifax

bargain_hunter25

Hi

What are you opinions of these 2 year fixed deal mortgages with the Halifax. 4.89% for 2 years for 75% LTV for example? I've not seen these before to be honest.

http://www.halifax.co.uk/mortgages/2yearfixed.asp

I think a 2.5% Product Fee could be off putting....

Locoblade

Exactly, 2.5% fee that you can only try to recoup over 2 years, the same with the Yorkshire Bank offer. If it was over a longer period it wouldnt be so bad, but for 2 years you'll pay slightly less per month but end up with loads more on the loan than if you went with a higher rate and low fees.

Headline interest rates certainly aren't the only thing that needs considering, sadly these kind of deals often feature at the top of the comparison pages because the monthlys are low and they don't take into consideration how much you've reduced the debt at the end of the fixed term.

manikm

yeah it looks scarey to me!

Locoblade

This shows that the rate isn't everything.... Ive got a 175k mortgage over 21 years, if I went for that deal I'd start off with a loan of £179350 (inc the 2.5%) and would pay £1140 a month. After 2 years Id still have £169,000 left on the loan.

If I went with a 5.99% mortgage with no fees, Id pay £1220 a month but have only £166k left owing after 2 years, so a full £3k less capital for an additional investment of £80 a month x 24 = £1920.

opinions4u

While not the perfect way to calculate an APR look at it this way:

Rate: 4.89% for 2 years.
Fee: 1.25% x 2 years = 2.50%

Total: 4.89% + 1.25% = 6.14%

It's actually worse because you've either paid the fee up front or had it added to the debt and paid interest on it!

Any 2 yr no fee deal fixed at less than 6.14% will be better value.

bargain_hunter25

Yes i agree with you on that one. I've just been having a look at whats on offer for my sister as shes desperate for her own place, even with the current "events" on the property market and economy. She has a 25% deposit so i'm personally thinking the West Brom Mortgage at 5.59 fixed for 5 years with a 999 fee is the best out there at the moment..

dwsjarcmcd

YBS launch today a new range of products all at 5.59% up to 75% LTV. Choice of 2, 3, 5 or 10 years, product fee £495 with free legals and valuation fee for remortgages.

Seems a very competitive range right now.

opinions4u

If you can, hold fire for a couple of days and see what the market comes up with. LIBOR rates seem to be easing.

Bleg

I am in the process of re-mortgaging and about to settle for the 5.79 tracker with HSBC. No tie in period. Arrangment fee of 599.

bargain_hunter25

Thanks for the info on YS BS. They have a 5.49% deal now fixed for 5 years with a 25% deposit but with a 995 product fee... They also have a 5.59% fixed for 5 years with just a £495 product fee and free legals..Will have to work out which one is the best.

http://www.ybs.co.uk/mortgages/current_products/index.jsp?mortgage_type=ybsMortgages1#ybsMortgages1

manikm

opinions4u wrote: »

If you can, hold fire for a couple of days and see what the market comes up with. LIBOR rates seem to be easing.

yes mate!!! i agree.