Best 5 year fixed deal ever???

savemoney

Well it makes a change normally companies falling over themselves ot get new customers at the detriment of existing ones

jayremoh wrote: »

never understood the whole better deal for existing customer crap.

surely its new custom they want?

jayremoh

savemoney wrote: »

Well it makes a change normally companies falling over themselves ot get new customers at the detriment of existing ones

surely thats what creates a competitive market though?

Spangled

That really sounds like an awesome deal. I'm currently with Coventry, midway through a three-year 5.55% fix. I've just started an application (today) with HSBC for their lifetime +0.99% tracker (I have no ERCs) but I may give Coventry a phone tomorrow and see what they'll offer! I assumed Coventry had no decent deals as the best listed on their website was their 5.34% SVR. Not sure if they'd offer me 3.99% though as my fix isn't as good as the OP's +0.75% tracker...

savemoney

Yes it does I am not knocking it, just saying it makes a change

jayremoh wrote: »

surely thats what creates a competitive market though?

MarkyMarkD

They aren't going to offer it to someone half-way through a fix - don't be silly!

This is just there to buy out their liability to a loss-making lifetime tracker.

Gorgeous_George

The 5th December cut-off is interesting.

The MPC should announce their December interest rate decision on the 4th so you could sign up and hand the application in after the rate decision.

A similar deal was discussed briefly on another thread and was 'dismissed' by some as a wind-up from Mr Pickles. This deal makes a lot of sense for lenders to buy lifetime trackers back from the holders.

In the short term, they deparately need more money and 3.99% of a lot of mortgages is a lot more than BofE +0.75%. If BofE falls to 0% as hinted recently, 3.99% will be 4 x the tracker rate.

It makes sense for these deals to be offered to lifetime tracker holders and possibly even moreso those tracking for 3, 4 or 5 year terms.

GG

handful

Thanks GG, that makes a bit of sense now. I believe Coventry are one of the healthier BSs due to a strong portfolio with high LTV ratios but maybe even they are looking to generate some short term cash. The question is, do I stick with my lifetime tracker and hold out for a better deal....or am I being greedy!!

I think I have more or less decided to go for it and can't risk leaving it until the last minute as I have no branch anywhere near. Also, I would have to forget about short term cuts and try to take a long term view of things, difficult for me though as I like to know I'm not losing out for a day never mind a few months! So even if rates are cut in December I still think this is a good deal.

As a matter of interest why was the previous thread dismissed as a wind-up?

Gorgeous_George

Click here for the other thread. I think the fact that the OP was on a tracker due to end shortly had something to do with it.

Only you can decide if you want the security of a fixed rate. Be wary that the fix is for 5 years and your tracker is for life.

Whatever you decide, be happy and if you take the fix, relax and enjoy the security. Do not fret if rates go lower. We cannot know what the future holds. It's like being in the AA - you use them everytime you drive your car even if you don't need their rescue services. Kind of like insurance.

GG

foreversummer

This is a very interesting development and it will be interesting to see if other lenders without collars do something similar.

I'd certainly be very tempted by this offer - I wish you all the best in your decision.

What incredible times we live in!

Foreversummer

karenj

I think I would take up the offer, even in the present climate that interest rates may drop further, but I am sure it won't last forever and they will start to rise, probably within the next 12/18 months. When we took out our 5 year fixed rate in 2003 at 4.59% which was a good rate at the time, we thought we were taking a gamble over a longish period, but we touched lucky when rates started to slowly rise. Now our fixed term has ended, we wonder each month how much our repayments will be and even with the 2 recent cuts, it is still slightly higher than our fixed rate was (now 4.69% with Nationwide). I think I would prefer to know exactly how much my mortgage payment is each month, rather than it jumping up and down - especially when it jumps up, when on a BMR. At least you can budget better.