Advice needed this weekend please!!!

cgillespie

I am about to commit to a Natwest mortgage and I am double checking I have made the right decision.

I have opted for their off-set flexible mortgage which has a rate of 4% but a fee of 2k. (I wont really use off-set facility as I have no savings, I just liked the idea of having no tie-ins so that if fixed rates dropped I could then switch at a lower rate. I realise I would have to pay another booking fee and have already spent 2k on the off-set fee).

If you were in my situation would you opt for that over a 5 yr fixed rate of 4.89% which only has a £299 fee.

I am borrowing 150k.

Comments please anyone???

maninthestreet

2K in fees? What are you getting for that? What is their current SVR?

Robert_Sterling_3

Paying a £2,000 fee for an off set mortgage when you are not going to use the off set facility seems a less than highly intelligent move at first sight to me.

it is a bit like buying a car although you can't drive but you like the Sat Nav in it. :eek:

cgillespie

maninthestreet wrote: »

2K in fees? What are you getting for that? What is their current SVR?

2k is the arrangement fee and there is nothing charged for solicitor or valuation.

Natwests SVR is 4.2% today, but from Feb is coming down to 4%.

cgillespie

Robert_Sterling wrote: »

Paying a £2,000 fee for an off set mortgage when you are not going to use the off set facility seems a less than highly intelligent move at first site to me.

it is a bit like buying a car although you can't drive but you like the Sat Nav in it. :eek:

I was worried about taking out a 2 yr fixed deal now and by the time that expired the 5 or 10 yr fixed rate deals could be much much higher than they are today.

Hope was to swallow the 2k fee then tie myself into a really good 5 or 10 yr rate by the end of the yr. Need to act now re remortgage as it is due to a separation.

maninthestreet

Surely it would better to just a mortage on their SVR? It will be 4%, and will surely have fees less than £2000???

cgillespie

maninthestreet wrote: »

Surely it would better to just a mortage on their SVR? It will be 4%, and will surely have fees less than £2000???

I didnt think you could remortgage to a company and go straight onto their SVR. At the moment I am with First Direct - they would not lend me the needed funds on my own due to the separation so I opted to use Natwest.

Do you think it would be possible to go straight onto their SVR? They are closed now till Monday, but I would be keen to find out from anybody???

socrates

£2k = walk away

Squish_21

Just get a 2 year fixed or something then switch at the end of the 2 years if something better is around.

£2k is loadsa money for a fee.

Ian_Griffiths_Halifax

Anybody taking out a 2 year Fixed Rate now will be suicidal in 2 years time.

Take the 5 year Fixed Rate and put your mortgage to bed for the next 5 years. Even if you have to pay legal and valuation fees on this mortgage compared to the Natwest Offset deal, they won't cost you £2,000, but at least you won't incur fees again for the next 5 years.

jamesd

The five year fix looks like a much better deal. Remember the economic forecast: low inflation or deflation this year then increasing inflation and interest rates to fight it. A five year deal should protect you from a lot of that high rate time.