to fix or not to fix

moo842

i'm looking at a ten year fixed rate with nationwide, there is a £199 arrangement fee and then its 4.89% for 10 years.
i know it would b ebetter to try and mortgage hop but we are at the limit of our budget right now and if intrest rates went up we'd be stuck, so what do you guys reckon good deal??

MortgageMamma

There is nothing wrong with the deal itself, but fixing for 10 years is a long while. I'm an independent mortgage advisor and I placed a client on this deal a month ago and they are happy about it as they only have a 10 year term left on the mortgage. If you are on a tight budget then fixing your mortgage is often a good idea, but the best thing to do is consult a professional who will look at your finances from all angles and then advice you on the best steps for you. I will tell you for nothing there's a great fixed rate on the market at the moment at 4.55% free legals and valuation, application fee added to loan. If the difference between the two rates are substantial you might well want to have a look at it. Most advisors will know who is offering the deal. Good luck with the mortgage if you go through with it, and a little word of advice, whilst nationwide are a great company for mortgages, they don't exactly rush things, so make a note in your diary to call them once or twice a week and give them a little prod!
Please note that although I am an independent mortgage advisor this post is intended for general discussion purposes and does not constitute professional advice and I cannot be held liable for any action you may or may not take as a result of my post.

Ian_W

Hi moo,
Mortgagemamma's pretty much said it all. If your budget is tight and you can't afford the possibility of interest rate rises fixing is defo the right thing to do.

Only thing is 10yrs is such a long time, not just in terms of interest rates but also things like whether you may move house etc. The mortgage will be portable but if you do move you'll be tied to NW for any additional borrowing so it is worth considering whether this is a possibility. NW also do a slightly cheaper [4.79%] 5yr fixed with the same fees which is also very competative. One good aspect about longer term fixing is you avoid fees every 2 or 3 yrs, even if it isn't always the best money-saving wise.

BoL whatever you decide.

moo842

thanks guys, i hadn't thought of the moving thing!! we're with nw at the moment so wouldn't have any valuation or legal fees i assume as they did it all two years ago. are you allowed to pm me and let me know which company is offereing the lower deal? as i've looked and cannot find it. thanks

mr_fishbulb

So when you have a fixed rate for X amount of years, you cannot move property for that X amount of time?

Wasn't planning to stay in my first house for 5-10 years

Heth_2

mr_fishbulb wrote:

So when you have a fixed rate for X amount of years, you cannot move property for that X amount of time?

Wasn't planning to stay in my first house for 5-10 years

Often a mortgage is portable, though haven't investigated what this really means if you wanted to move to a bigger house (=larger mortgage) etc..
We are trying to buy now and going to fix for 5 years.

scoobysnaks

MortgageMamma wrote:

I will tell you for nothing there's a great fixed rate on the market at the moment at 4.55% free legals and valuation, application fee added to loan.

Any chance you can share the info mortgagemamma?

:j

sarah_elton

mr_fishbulb wrote:

So when you have a fixed rate for X amount of years, you cannot move property for that X amount of time?

Wasn't planning to stay in my first house for 5-10 years

It never means you *can't* move, just means there may be financial penalties during that period if you do (either move house and stay with the same lender, or move the mortgage to someone else).

Ask your specific lender what they are in your case.

Ian_W

mr_fishbulb wrote: So when you have a fixed rate for X amount of years, you cannot move property for that X amount of time?

I didn't say that - most these days are portable but any extra lending will have to come from the same source but quite possibly at a higher rate. If it isn't portable you may well have to pay ERCs if you want to move.

moo, scoobysnaks do behave!! - MortgageMamma is a broker, ergo s/he pays their mortgage by having that sort of inside info [poss a broker only deal] and arranging your mortgage for a fee or commission. Why would MM pass on that info for nothing? Would you work for nowt!!

MortgageMamma

two great fixed rates for remortgages on market at moment

4.55% 2 year fixed (first active)
4.54 abbey - only available through intermediaries such as myself (ahem)

they are both tranche products which means when the alloted funds sell out they will be withdrawn, even if you have not yet made a decision it might well be worth getting your funds booked so you are guaranteed to get the deal before it's pulled (this involves credit checking)

Sorry Ian - I sometimes can't help myself but I'm open to offers of mortgage business!

moo842

thanks guys, everyone is so lovely!! we are now pretty certain we will stick with nw, although i may go and speak to abbey, it would just be a much simpler process witn nw as we have had all the checks done before