Whats The Best Fixed Rate Mortgage On The Market At The Moment??

katew87

herbiesjp wrote: »

If you have the extra £3k then I would put it down to get a different deal

If you add on the £3675k fee you are then increasing your mortgage straight away by that amount, increasing your loan to value straight away, and paying interest on that amount as well

Well I probley could get the extra 3k if I really needed to but I would prefer to keep it for house refurb etc, but if there is a big enough diff in interest I would go for it.

Ok Im confused, I def need to get myself to a FA speedy!!

PeteHi

I found First Direct to be the best @ 5.95% fixed for 5 years with about £600 in fees (as far as Im aware they dont deal with brokers/advisors).

They were the best for our needs, but it took weeks of trawling all the sites and getting good advice on here. I will warn you that it was a lot of hassle dealing with the mortgage lender direct - with valuation problems, several phone calls each day and crossed wires on their part/repeat phone calls, and even yesterday we discovered they had actually been charging us a higher rate for 3 months! It was extremely stressful -I had to go to the docs with these panic attack type symptoms for the first time in my life, I couldnt breathe and even ended up in A&E having a chest x-ray. All this miraculously disappeared when the mortgage got sorted lol!)

I'd say if you are confident enough in sorting it yourself then go down that route and use the comparison sites (FSA one is good) and check the providers sites direct... as like everything there are good and bad advisors out there! The one I had used for the past 10 years could only find me a deal at 7.5% SVR with fees!!! Going of that kinda rate we would have been homeless!

If you don't really know what you are doing (no offence) then an advisor is definitely the way to go! There are some very good ones on here.

Good luck!

feisty1

swingjune Quote: For your information, I have checked my credit score, I don't have this problem Quote

Toughluck said:If you don't want to use a broker then do it yourself and have multiple scores done on you by various lenders.

Toughluck wasnt meaning credit status!

This is the problem on here with all the DIY armchair mortgage specialist, they dont realise the full implication of "multiple scores"

binkybat

:mad: The Northern Rock have at last passed on an interest reduction following the bank of englands base rate reduction of half a percent the other week. I recieved a letter this morning notifiying us that as of the 1st of November 2008 the interest rate on our standard variable rate mortgage would drop by a whopping .15%. I was naturally, quite upset about this. When I phoned to ask why the full half% reduction hadn't been passed on I was told that because the bank was paying back it's loan to the bank of england following it's privatisation the full reduction was not being passed down to mortgage holders. Has anyone any idea how we can bring people power to try and get the bank to pass on the full reduction. Once again we, the public are being screwed over by the banks!!!!

herbiesjp

PeteHi wrote: »

I found First Direct to be the best @ 5.95% fixed for 5 years with about £600 in fees (as far as Im aware they dont deal with brokers/advisors).

But the OP wanted a fix for 2/3 years

Personally though, like yourself, I would opt for a longer fix like a 5 year deal, in order for the market and house prices to settle in time for when the re-mortgage was coming up up for renewal

confused31_2

katew87 wrote: »

Ive found a deal with Halifax 4.89% and 2.5% arr fee which would be £3750, (I would add this to the mortgage) this would make my payments £50 odd cheaper a month than the average 5.79% mortgage out there, surely this is the best deal at the moment or am I seeing something wrong??

Thanks for everyones help, I really appreciate it x

you say if you pay the 3750 pound fee you will pay 50 pound less a month over the 5 years which works out at 3000 pound so you are loosing 750 over the 5 years for going with the big fee one.

and you want it over 3 years so you will save paying 50 pound a month but in reality you will be paying 54 pound on top of that more when you divide the 3750 over the 3 years

Its a no brainer go for one with a small fee if your going fised with the slightly higher interest rate and you will save about 54 pound a month, plus remember if you add the 3750 on top that will have interest put on it aswell.

I would just jump on a variable mortgage with no fee at first direct or nationwide, i know with nationwide you can jump onto a fixed product at anytime whilst you have got a variable mortgage, and i think you will find interest rates will be coming down again in the future.

confused

Locoblade

katew87 wrote: »

Ive found a deal with Halifax 4.89% and 2.5% arr fee which would be £3750, (I would add this to the mortgage) this would make my payments £50 odd cheaper a month than the average 5.79% mortgage out there, surely this is the best deal at the moment or am I seeing something wrong??

Thanks for everyones help, I really appreciate it x

You are missing something Im afraid. Adding a big fee to the mortgage in return for low rates might give you the ulitmate lowest monthly, but it doesn't mean its the "cheapest" or best deal.

Take an example £100k loan over 25 years. With no fees and a rate of 6%, you'll pay £644 a month and after 5 years will have £89,932 remaining (ie paid off just over £10k).

If you take the same £100k loan but go for a rate at 5.5% but with a fee of say 3%, you're effecively remortgaging £103k at 5.5% with no fees, so you start off £3k behind in effect. With that loan you'll pay £632 a month (so £12 less) but even after 5 years you'll still owe £91,950, i.e. £2000 more than the above. £12 x 60 payments = £720, so although you've saved £720 in repayments over 5 years, the mortgage is £2k worse off.

You could overpay that £12 a month which would help you break even more quickly, but you need to do the sums (or use my spreadsheet ) to work out if its worthwhile for you over the short period of the fix.

_Andy_

binkybat wrote: »

:mad: The Northern Rock have at last passed on an interest reduction following the bank of englands base rate reduction of half a percent the other week. I recieved a letter this morning notifiying us that as of the 1st of November 2008 the interest rate on our standard variable rate mortgage would drop by a whopping .15%. I was naturally, quite upset about this. When I phoned to ask why the full half% reduction hadn't been passed on I was told that because the bank was paying back it's loan to the bank of england following it's privatisation the full reduction was not being passed down to mortgage holders. Has anyone any idea how we can bring people power to try and get the bank to pass on the full reduction. Once again we, the public are being screwed over by the banks!!!!

This has no relevance to this thread.

PeteHi

herbiesjp wrote: »

But the OP wanted a fix for 2/3 years

Personally though, like yourself, I would opt for a longer fix like a 5 year deal, in order for the market and house prices to settle in time for when the re-mortgage was coming up up for renewal

to be fair, I was talking about the rate I got.

Youll ne doubt be aware that First Directs 2 & 3 year fixed deals are a similar %.

Other than the fear of rate going up with a SVR deal, the main reason I fixed for 5 is I couldnt be bothered with remortgaging hassle in about 20 months times. How you guys do it for a living I'll never know :T

herbiesjp

PeteHi wrote: »

to be fair, I was talking about the rate I got.

Youll ne doubt be aware that First Directs 2 & 3 year fixed deals are a similar %.

Other than the fear of rate going up with a SVR deal, the main reason I fixed for 5 is I couldnt be bothered with remortgaging hassle in about 20 months times. How you guys do it for a living I'll never know :T

I know - I was agreeing with you on your choice:rolleyes:

Nor do I at the moment ! :rotfl:

But I love it - and wouldn't do anything else:p