Best 5 year fixed deal ever???

handful

jawster wrote: »

Depends on your attitude to risk - personally I'd take the letter as a very strong sign that the deal you are currently on is actually the better one, companies don't try and convince their customers to move to lower profit products, they only upsell.

I agree to some extent jawster but they are no more 'in the know' than anyone else as to where interest rates are going to go in the current volatile climate. They are gambling by offering in the same way as I am gambling by accepting or indeed declining.

If someone had told me 3 months ago I would be offered this deal I would have thought they were completely mad. A good friend of mine fixed for 5 years at 6.29% not 2 months ago. My gut feeling is that when (and who knows when that will be) rates bottom out and make the first upward movement, all of those on trackers will be bailing out and at the same time, fixed rates will be climbing at an alarming pace. Therefore, I feel like I will probably accept but I will probably wait for a week or so as a lot can happen in a week at the moment!

JayZed

I think it's a great offer - I'd take it if I were in your position.

You might want to make sure it's portable, though, if you're thinking about moving - just because your last fixed deal with Coventry was, it doesn't necessarily follow that this one will be.

jawster

Luckyfool - I do fully agree it could well be the best thing for the OP.

handful - It is a bit of a Deal or No Deal scenario, totally depends on your financial/personal circumstances (i.e. job security, family responsibilities, savings etc) and crucially, your attitude to risk.

Always go with your gut feeling but I just wanted to point out that the perhaps 'risky' thing to do i.e. turn the offer down needs to be considered, only because its the company coming to you and pro-actively trying to move you on to something else.

Who knows, you may even be able to bargain directly with them and cheekily get an even better rate?:D

handful

mstopham wrote: »

What's the deal at the end of 5 years? Is it SVR or BBR? The tie in is very low but could you get stung at the end?

Hi mstopham. It reverts to what Coventry call their Privilege rate, currently 5.24%. This is basically their SVR less a discount of 0.1% for long standing customers (3 years I think). No penalty for switching after the end of 5 years.

My only real fear is that if we do enter a long period of low rates I am giving up a very competitive 'lifetime' tracker deal but I never viewed that a tracker would be the best option long term anyway as rates don't go down forever, and when they do go up, trackers are the worst possible deals as any increase gets passed on immediately!

jayremoh

if you dont want it, can i have it please?

djdaface

They have given you up until 6 days prior to the next rate cut... maybe they know its going to be another 1.5% and want existing customers with good LTV to fix quick!

JayZed

Even so, this is a five-year fix. A tracker at +0.75 will certainly be more competitive over the next 6-12 months, but who knows where rates will be in 2-3 years, let alone 4-5?

handful

JayZed wrote: »

Even so, this is a five-year fix. A tracker at +0.75 will certainly be more competitive over the next 6-12 months, but who knows where rates will be in 2-3 years, let alone 4-5?

Exactly my thoughts. If I took a short term view I would definitely sit where I am but I think I stand to gain much more than I stand to lose over 5 years.......or at least I hope!

jayremoh, no, get your hands off

djdaface, you are right I'm sure and if I accept I'm sure I will go through all the emotions until rates start to rise. I will have to learn to switch off and just be thankful I have what is historically an exeptional deal.

A_little_stressed!!

Just rang - existing customers only! GRR! 7.09% I was offered!

jayremoh

never understood the whole better deal for existing customer crap.

surely its new custom they want?