Stick or twist?

bobbyvegas

Hi all. A little advice required if possible. Current fixed rate mortgage is about to end.

My current provider (Coventry BS) have offered us 5 years fixed at 4.99% or 3 years fixed at 4.50% with no fees.

I know its impossible to predict which way interest rates will go but is this a good deal? Or should I shop around. I've never negotiated a mortgage before. Is it possible to? Or are the rates like it or lump it?

Thanks

silvercar

What current deal are you on with the Coventry?

bobbyvegas

5% fixed.....

JF77

The 5 year rate looks tempting especially if you have no plans to move home.

You could stay on the SVR for a bit and see what happens (5.34% at the moment I think) although they are not obliged to reduce this further following any cut in the BOE rate.

As far as comparing this rate to other providers I think it compares really well especially as there is no fee.

Toni_Broke

Hi Bobby, have exactly the same problem, we too are with the cbs and have until Weds to accept the offer. Big decisions!

silvercar

So you are on a 5% fix and have been offered a 4.99% fix for 5 yrs or a 4.5% fix for 3 yrs. How long is the 5% fix for?

bobbyvegas

5 Years.....

hearts

I have a similar situation. What I'm thinking is, that rates are expected to fall again soon. Once/If they do and the could fall by as much as 1% then better deals could be on offer. Certainly they will be no worse. So I'm deciding on Twist and see what the next card brings. ;-)

Toni_Broke

Hi, i am on a 4.99 fix due to end Dec 31 and have been offered the 4.5 fix for 3 yrs or 4.99 fix for 5 yrs. We have to make a decision by tomorrow. It does seem like a good deal and we would be paying slightly less but we feel we are being rushed and perhaps that is because they know the rates are going down? However the letter does state this offer is for maturing mortages and it makes me wonder if once it has matured you wouldnt be offered such a competetive rate. Any suggestions?

silvercar

In the past, as currently, you can always phone up and get access to any deals that are available to new customers, with the same fees that new customers pay.

My fix ended Dec 2007 and moved to lifetime BoE base rate + 0.75%. I've not been offered any deals. This does suggest that you may not get any special offers in the future.

Toni_Broke

Hi Silvercar,
Thanks for your reply, is that with the CBS? Our mortgage is in 2 parts and the second part tracks the base rate and is gauranteed not to go higher than 1% of the bank of england base rate. However we are being told we cannot,at this time, amalgamate them. This is ok at the mo as the rate is only 4% but not if it should rise. I like the security of a fixed rate but dont want to be ripped off! Going to speak to the branch today and then hopefully reach my decision.