FD Tracker +1.49 or 5 Year Fixed 4.69 ?

yrk007

I am with YBS and fixed finishes at end of March 2009. I currently owe 160k and house has approximate value of 230k (according to YBS). YBS SVR is 4.99% which is pretty poor compared to some others like Nationwide.

I have an offer for both the YBS 5 Year Fix at 4.69 with no fee and FD Tracker at BOE Base + 1.49. My current equity is approx 70% and am considering my options; if prices fall further then I could rise above the 75% LTV mark and have less favourable rates on offer if I wait for better fixed deals.

The FD offer has £99 valuation , £599 Fee with £149 ERC. The offer from YBS is still valid for one more week; they have since increased 5 Year Fix to 5.49 for existing borrowers but I can still accept 4.69 deal till end of next week. There is a difference of £290 per month between FD (at current BOE) and YBS interest charges.

Obvioulsy would have to factor in another arrangement fee (possibly £1000) if I go with FD if I wanted to take Fixed at later date.

Would appreciate your advice and any recommendations on the mortgagae options I have?

whu

Hi -it really depends on whether you want the security of knowing what your monthly payments will be for a set period or whether you would be happy to take the chance on the tracker rate when BOE rate goes up eventually (whenever that maybe)- also your point about the LTV is worth considering because even if FD offered a better fixed rate in due course you may not get the best rate - personally I prefer the security of a fixed rate over a 5 year period

Anon

yrk007 wrote: »

I am with YBS and fixed finishes at end of March 2009. I currently owe 160k and house has approximate value of 230k (according to YBS). YBS SVR is 4.99% which is pretty poor compared to some others like Nationwide.

I have an offer for both the YBS 5 Year Fix at 4.69 with no fee and FD Tracker at BOE Base + 1.49. My current equity is approx 70% and am considering my options; if prices fall further then I could rise above the 75% LTV mark and have less favourable rates on offer if I wait for better fixed deals.

The FD offer has £99 valuation , £599 Fee with £149 ERC. The offer from YBS is still valid for one more week; they have since increased 5 Year Fix to 5.49 for existing borrowers but I can still accept 4.69 deal till end of next week. There is a difference of £290 per month between FD (at current BOE) and YBS interest charges.

Obvioulsy would have to factor in another arrangement fee (possibly £1000) if I go with FD if I wanted to take Fixed at later date.

Would appreciate your advice and any recommendations on the mortgagae options I have?

Where did you see the FD +1.49% please? This is much cheaper than they are currently advertising on their website.

Many thanks

Anon

LULULU1

Are you sure the FD is offering 1.49%. On its web site its 1.89%.

Just asking because this is the one we are interestyed in..

Anon

Me too, the website shows BOE +1.89%, fee of £799, £270 valuation (varies on value of property) and no ERC.

Anon

kazd

ditto

We are just in the process and its def 1.89% although our valuation was only £99

anselld

OP probably applied back in Jan when it was 1.49, like me :-)
If you ask for an "external only" valuation it is £99. Not sure if they ever insist on the full £270 valuation or not.

yrk007

I applied for FD in principal near Jan like anselld so offered 1.49 before 1.89 hike.

yrk007

I was offered £99 external valuation when it was +1.49. They must have changed the valuation fee/process.

Anon

Thank you for clarifying - I always arrive late to the party ...:(.

Anon

kazd

Yes we just went for the external valuation, documents requiring witness signature have arrived today so not sure if that means valuation okay or if that still has to go ahead.