Advice needed this weekend please!!!

Tiddler_2

why not look at a One Account - no arrangement fee, same affordability calculation as Nat West - though you will have to pay for valuation & legal fees I believe.

Jonbvn

Taking an offset mortgage now with no savings with a £2k fee is crazy. Why would anyone do that mow?????

getmore4less

Given you don't actualy give enough details and one lender has allready decided not to offer it is difificult to know what options you may have available to you.

£2k is a lot to pay considering you actualy want a different deal as soon/if one becomes available.

It could be that many of the deals being suggested are not available due to LTV.

dimbo61

For your security over the next five years I would go for the 5 year fix and if you can afford overpay when money is spare.
You now have only one income so to protect yourself please consider very carefully a long term fix at the best rate you can get ( taking into account fees, etc )
This gives you time to clear some of the mortgage and build up the equity in your home.
think long term is your mortgage for 2/3 years ??? so why think 2/3 years
Mortgage rates arevery cheap at the moment & the only way is UP !
GOOD LUCK
This is only my opinion and not advice !!

cgillespie

My thinking was to get on a cheap rate with Natwest (i.e. flexible mortgage rate is 4%) then once interest rates drop more on there 5yr fixed deals switch quickly to that.

The way I worked it out was that if I took out there 5yr deal now at 4.89% I would pay £36660 in interest over the five years.

Whereas if I held off and hopefully got the same 5 yr fixed deal at a slightly lower rate, say 4.49% the amount would be £33675.

Therefore a difference of around 3k and minus the fees I would have had to pay out for both product (£2299) would mean I'd be £700 better off.

And that is only taking into account I could get a fixed at 4.49%, if even lower = greater savings.

Plus whilst on the flexible rate before fixing I'd only be paying 4%, or possibly lower if this moves with future interest rate cuts.

Does this make more sense???

I need to commit to one product now due to separation and Natwest are the only lender who will lend me the required funds.

Ian_Griffiths_Halifax

cgillespie wrote: »

My thinking was to get on a cheap rate with Natwest (i.e. flexible mortgage rate is 4%) then once interest rates drop more on there 5yr fixed deals switch quickly to that.

The way I worked it out was that if I took out there 5yr deal now at 4.89% I would pay £36660 in interest over the five years.

Whereas if I held off and hopefully got the same 5 yr fixed deal at a slightly lower rate, say 4.49% the amount would be £33675.

Therefore a difference of around 3k and minus the fees I would have had to pay out for both product (£2299) would mean I'd be £700 better off.

And that is only taking into account I could get a fixed at 4.49%, if even lower = greater savings.

Plus whilst on the flexible rate before fixing I'd only be paying 4%, or possibly lower if this moves with future interest rate cuts.

Does this make more sense???

I need to commit to one product now due to separation and Natwest are the only lender who will lend me the required funds.

5 year Fixed Rates may not drop by another 0.4% as you are expecting. short term drops in variable rates have little impact on medium to long term Fixed Rates.

If we see another 1% drop in the BoE Base Rate, I think you'll see a drop of 0.1 to 0.25% on the 5 year rates maximum. Is it worth gambling for the sake of £700?

Also, I'm fairly certain that if Natwest will do you a mortgage, then somebody else is likely to.

cgillespie

Ian_Griffiths_Halifax wrote: »

5 year Fixed Rates may not drop by another 0.4% as you are expecting. short term drops in variable rates have little impact on medium to long term Fixed Rates.

If we see another 1% drop in the BoE Base Rate, I think you'll see a drop of 0.1 to 0.25% on the 5 year rates maximum. Is it worth gambling for the sake of £700?

Also, I'm fairly certain that if Natwest will do you a mortgage, then somebody else is likely to.

Thanks - appreciate your comments.

Bambywamby

Hi there

Personally I would go with the fixed rate 5 year deal. You get five years of security knowing exactly what you have to pay, with all Natwest mortgages you can pay upto an extra 10% off your mortgage (per year) without having to pay a penalty, so this gives you some flexibility and if you have no savings the off-set mortgage seems kind of pointless, particular with a £2000 fee to boot.

Good luck with whatever you choose. x x