Another post asking for advice ...

Sammz

Sorry, I'm sure people must be getting fed up of reading these posts!

I have about £52k to pay on my mortgage. No idea about how much flat is worth. There are similar on the market for overs over £92k but they aren't selling. I'm with NR (6.29%) which is due to finish 1st January. My salary is more than enough to get a £52k mortgage. I have the money to pay the fees (would rather spend it on other things though!).

I have been quoted:

BEST-FIXED RATE
4.99 fixed until 28/02/2011, arrangement fees added to the mortgage £1317.00

BEST TRACKER RATE
4.99% until 31/01/2011, arrangement fee added to loan £1317.00

BEST COST TRACKER OVER 2 AND 3 YEARS
5.44% for either 2 or 3 years, arrangement fee added to loan £599.00

I'm thinking these are decent? Anyone like to suggest anything else? I can afford to pay the SVR for a while if it means something better is likely to come along.

pfpf

hi Sammz, hows things?

i am by no means an "expert" but we got a new mortgage in March this year, thank god.

it is a tracker with Barclays (Woolwich). the deals are by no means as good as they were but have a look here:

http://www.woolwich.co.uk/mortgages/compare-our-mortgages.html

look at the lifetime trackers with no fees, this is what we got and as our LTV was only around 38% we got the better rate.

i am not saying this is the best on offer and others will suggest alternatives but it was a good deal for us and think its still quite competative especially as it seems rates are going down and there's no fee's upfront or to get out of the mortgage at any time, just the redemption which is around £275.00.

good luck.

edit. you should just squeeze into the best rate aswell if you have a LTV under 60%.

herbiesjp

I've seen a couple of fixed rate come down slightly, the last few days.

However I've seen tracker deals being increased.

The ones you've picked seem the best options - you have to decide whether you want to take a gamble with a tracker rate or if you want the safety of a fixed rate. Although I think the tracker rate you have quoted may offer the flexibility to move onto a fixed rate (without incurring any penalties) if you wanted to do so

Sammz

:hello: pfpf - thanks for that. I'll have a look.

And thanks herbie too, I'll see if that deal can be moved to fixed without fee.

latecomer

Sounds like a good idea given the current expectations that the BOE rate will be generally lower in the next couple of years. Of course if you are a pessimist (like us) you can always go for a long term fixed just to get the security of a set payment each month.

Toughluck

Sammz,

Is the 4.99% deals C&Gloucester? They carry 2.50% arrangement fee. based on your mortgag loan size you are better off getting a higher rate with a lower fee. Find a happy medium. For example on that 4.99% rate your balance will be £53317 befor you have even made a payment.

Sammz

It can't be moved to fixed without another fee.

Not sure if it's C&G but going what I've seen online I think it must be. I can afford to pay the fees just now if that makes a difference? Do you know of a mortgage that would suit me better?

Off to search for that spreadsheet that shows the difference between a low rate/high fee and low fee/higher rate.

Toughluck

Can't say whether that is the best for you or not. there probably are better deals about. I'll leave you to spend your evening searching for it!!!!!!

herbiesjp

Sammz wrote: »

It can't be moved to fixed without another fee.

Not sure if it's C&G but going what I've seen online I think it must be. I can afford to pay the fees just now if that makes a difference? Do you know of a mortgage that would suit me better?

Off to search for that spreadsheet that shows the difference between a low rate/high fee and low fee/higher rate.

Yes - you will have to pay the arrangement fee for the new fixed rate, but you will not incur any Early Repayment Charges to leave the tracker rate.

I know lots of mortgages :rotfl:

However there is no way anyone could say which would suit you better, based on a few posts on the board. There are plenty of other options, but it would need more in depth discussion to see which would suit you better

Sammz

That question was directed at Toughluck who suggested a higher rate/lower fee might be better. I hadn't seen any around so was asking for some suggestions.

I'd rather not pay £1317 now for tracker then again a few months down the line to go fixed.

_dave__4

Sammz wrote: »

Off to search for that spreadsheet that shows the difference between a low rate/high fee and low fee/higher rate.

Looks like the 5.44% / £599 fee would be better than the 4.99% / £1317 fee on a mortgage loan of £52K :-
http://calc-calc-calc.net/get/calc/Mortgage-Comparison/v1/?L=52000&I1=4.99&Yrs1=2.25&Add1=1317&Term1=20&I2=5.44&Yrs2=3&Add2=599&Term2=20

Does that help?