is this a good deal with barclay's?

wantone

i need a morgage to cover some renovation work to my roof, i dont have a morgage on my home at the moment but need to raise £35,000 to cover repairs plus pay off an exsisting loan

barclays are offering £34.000 + £995 fee
over 10yrs
15 payments at a fixed rate of 3.79% at £350.83 a month
then 105 payments at variable rate (currently 3.79%) £350.83

ive been lucky enough never to have a morgage and dont know whats best variable, tracker, fixed, repayment etc

can anyone give me some advice please, i would be gratefull

herbiesjp

You could always look at a longer term fixed rate if you wanted, rather than a 1 year fixed rate followed by a variable rate.

At that borrowing amount the higher fixed rate would not impact too much on you, and you would be certain, say for 5 years instead that your payments would not change. Who knows what the variable rate will do in the future so it may be worthwhile looking at getting a long term deal sorted. Also a £995 fee for a 1 year fix is high for that amount of borrowing. Again a slightly more expensive rate with lower, or no, fees may work out more cost effective for you.

Robert_Sterling_3

wantone wrote: »

ive been lucky enough never to have a morgage and dont know whats best variable, tracker, fixed, repayment etc

You are not the only one.

This is not a "one type fits all cases" situation.

wantone

herbiesjp wrote: »

You could always look at a longer term fixed rate if you wanted, rather than a 1 year fixed rate followed by a variable rate.

At that borrowing amount the higher fixed rate would not impact too much on you, and you would be certain, say for 5 years instead that your payments would not change. Who knows what the variable rate will do in the future so it may be worthwhile looking at getting a long term deal sorted. Also a £995 fee for a 1 year fix is high for that amount of borrowing. Again a slightly more expensive rate with lower, or no, fees may work out more cost effective for you.

can i go back to barclays and haggle a longer fixed rate or do i need to look elseware for a better deal?
£995 seems a lot as a fee

herbiesjp

It is not so much haggle, as see what rates they have.

They have a list of them and you should be able to choose.

Alternatively you could look at other banks, who I am sure would be happy to lend you the money

philswannie

According to the news this morning Barclays have launched a new range of lower fixed rates, might be worth checking back with them again today.

philswannie

Looks like the news 'over did' the new Barclays fixed rates, it seems its just a one year fixed followed by a tracker rate, so probably no help to you at all.