fixed rate mortgage for 5 years

Tigger008

We are on fixed rate of 4.88% coming to end on 2nd of Feb 2009 with Abbey
Abbey have now offered us 4.99% fixed for 5 years with a booking fee of £599.
We are no expert but do you think this a good rate to go for.
Any advice will be appreciated.

Walaboobah

If you are an existing Abbey Customer, I think they've got a bit of a cheek charging you a £599 booking fee.

The rate itself looks like a decent deal though as no-one is really sure where rates will be in 5 years time but I would guess at around the 5% mark, so 4.99 fixed for 5 years would seem to be pretty good to me

beecher

£599 isn't bad for an arrangement fee compared to some.

I'd be tempted to stay on the SVR for a while and see if a slightly better 5 year fix comes up, but it'd be a gamble. SVR is 4.94% and might come down further if interest rates are cut this week so it might make sense to hold off until they make an announcement about any changes to the SVR.

PeteHi

like someone else said, it seems a bit cheeky asking you for a £599 fee when your an existing customer.

The rate youve been offered seems good to me (better than the 5.95 I fixed at a few months back anyway!!).

I have to laugh at the people I work with who are on variables and trackers boasting about how cheap their mortages are at the minute as though it will last forever. Who knows what it will be in say 3 years time?

hendiman

Like others have said I think it is a good rate.

Personally I am on a 5 year fix at 5.35% and even though I do not benefit from the recent interest rate falls I am still happy with the product because of the certainty that it provides. I also like the fact that I have avoided paying arrangement fees that I would have incurred if I had remortgaged every 2-3 years. I also believe that although interest rates are low at the moment because of the recession upon economic recovery I think interest rates will probably rise - perhaps quickly and significantly - but then again who really knows what will happen?

Other factors you may want to consider is your ability to repay capital without penalty and the portability of the mortgage should you wish to move house. This latter factor will not be an issue if you do not intend to move in the next 5 years.

hostman

The rate is good, but try and negotiate on the arrangement fee.

Ian_Griffiths_Halifax

hostman wrote: »

The rate is good, but try and negotiate on the arrangement fee.

:rotfl:

In 19 years I've never known 1 lender negotiate on the arrangement fee.

The OP might be able to get an alternative product without a fee if that's what you mean, but it will come at a cost somewhere else, such as a higher interest rate.

hostman

Ian_Griffiths_Halifax wrote: »

:rotfl:

In 19 years I've never known 1 lender negotiate on the arrangement fee.

The OP might be able to get an alternative product without a fee if that's what you mean, but it will come at a cost somewhere else, such as a higher interest rate.

Then your negotiation skills need homing.

Ian_Griffiths_Halifax

hostman wrote: »

Then your negotiation skills need homing.

I'm a very good negotiator actually.

gitch01

tigger, check out britannia website - https://www.britannia.co.uk

depending on your loan to value you could get a 5 year fixed at 4.89% if i have read it right. no fees payable

Joe_Bloggs

@Ian Griffiths Halifax
Oh No your not!
J_B (Panto season mode)