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Advice needed this weekend please!!!
Comments
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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.0
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Taking an offset mortgage now with no savings with a £2k fee is crazy. Why would anyone do that mow?????In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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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.0 -
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 !!0 -
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.0 -
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.I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0 -
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.0 -
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 x0
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