2 year fixed rate @3.99% ????

james1967_2

Good morning All,
My girlfriend is being offered the above deal with her existing broker.
They offered the deal with a brokerage fee of £1000 with a £300 cashback.
The mortgage is £275.000, the value of the property is probably near £425.000 as our neighbours was sold for £495.000 last year.Im just doing a bit of research, and would greatly appreciate any advice out there. many thanks James

beecher

Is there a particular reason your gf wants a 2 year deal? I'd be keen to tie in for 5 years and save forking out another brokers' fee in 2 years time.

james1967_2

Hi Beecher,
Im not sure if a 5yr deal was being offered. Im not completely aufait with this sort of thing but do you think fixing for 5 years would be a good move? the last posting of this sort was back in november but the rate has dropped again.

beecher

Depends on her circumstances. Who knows where interest rates will be in 2 years time - I want to lock in at a rate for 5 years and not have to worry about where interest rates go in the short term. I also don't want to pay another set of arrangement fees until I have to.

I'm surprised the broker didn't mention the advantages of a 5 year deal - do you think he's maybe keen to get more fees in 2 years time?

koexelek

james1967 wrote: »

They offered the deal with a brokerage fee of £1000 with a £300 cashback.

What's the point of that ?

Why don't they just charge £700 in the first place ?

TheGreatBear

I would seriously consider talking to another broker! I am not saying that this deal is not competitive, but I would always reccomend getting a second opinion. Also, the fee of £1,000 for a remortgage does seem a little excessive. As the previous posters have mentioned, longer term fixed rates are in vogue at the moment but i would also consider a tracker with a drop-lock facility (your broker should be able to explain further)

Kind regards and happy hunting

james1967_2

She has been with this broker for a few years and is happy with the service, if i could get the broker to tie it to 5 years i guess it would be a good deal. Im sure as you say the broker would like another arrangement fee in 2 years, also theyre probably wondering what the rates do in 2 years. Anyway beecher im off to work, i shall log in later to see any replies. Thanks for your advice and shall post with further info. Regards James..

james1967_2

just got some more information from my gf, she is already with L&C and the Abbey lenders fee is £995 with £250 cashback, therefore i think there is no broker fee, pls all excuse my ignorance, i went onto L&C website and found 3 & 5 Year deals, 3 years at 4.39% and 5 at 4.99%...Any Ideas