Get a fixed deal now

figgyroo

I am looking to remortgage at the beginning of May to a 5 year fixed deal. I am going to see the HSBC mortgage advisor next week with a view to getting their 3.99% deal. I am hoping I'll be ok with the 60% LTV. I have calculated the current LTV using the Halifax and Nationwide calculators (using the value my current mortgage provider valued it at last year, which was £20k less than the estate agent valued it for) and worked it out to be approx 56% LTV.

Do you think I am better signing up to this deal now to fix the rate of 3.99% (if I can) or wait another month to see if any other deals come up and thus risk my LTV increasing to over 60% as house prices fall further.

Thanks in advance.

whu

Personally I think 3.99% for 5 years is pretty good - it might be worth taking it rather than hoping for a slight reduction and then finding that you have to infact pay more - better safe than sorry IMO

dimbo61

Check all the terms and conditions of this offer !
Max overpayment 20% a month by DD with your mortgage
If you can keep near to your existing monthly payment by reducing the term by a few years you will save thousands in interest.
The fee is £995
But 3.99% is a good long term deal GOOD LUCK

inspector_monkfish

think we will be at this level (0.5% base rate) for many many months
wouldn't be surprised if alot better deals start to appear from other lenders over the next few months....

AntiLochus

figgyroo wrote: »

I am looking to remortgage at the beginning of May to a 5 year fixed deal. I am going to see the HSBC mortgage advisor next week with a view to getting their 3.99% deal. I am hoping I'll be ok with the 60% LTV. I have calculated the current LTV using the Halifax and Nationwide calculators (using the value my current mortgage provider valued it at last year, which was £20k less than the estate agent valued it for) and worked it out to be approx 56% LTV.

Do you think I am better signing up to this deal now to fix the rate of 3.99% (if I can) or wait another month to see if any other deals come up and thus risk my LTV increasing to over 60% as house prices fall further.

I applied for the HSBC 3.99% fixed for 5 yr yesterday, got approved and went through the application over the phone, it took about an hour. I think this is the only 5 yr fixed at this rate around at the moment - unless anyone knows any different?

Woolwich had a 3.99% fixed for 4 yr but upped the rate to 4.29% on Wednesday (day before the BoE rate cut - wonder what the significance of this is?)

The Post Office have the only other comparable 5 yr fixed at 4.15%.

I think the rest are all higher than 4.15%

A couple of months ago on this board a lot of people said they would jump at 5 yr fixed at less than 4% - I think it is a great rate - you may or may not see further reductions on fixed rates but personally, as we have bought a house and need to move in the next 8 weeks, we can't hang around waiting

davel_2

I applied for this deal yesterday, but they came back with a ridiculously low valuation on my property, which meant I wasn't within the 60% ltv. I've asked them to take it to the next level and am waiting on a proper valuation, not an online one.

beecher

AntiLochus wrote: »

A couple of months ago on this board a lot of people said they would jump at 5 yr fixed at less than 4% - I think it is a great rate - you may or may not see further reductions on fixed rates but personally, as we have bought a house and need to move in the next 8 weeks, we can't hang around waiting

I said that, but I can't justify paying out £999 in fees when my SVR is 3.5%. I am still in wait and see mode but it looks like a good deal to me - apart from the limited overpayments.

figgyroo

Thanks everyone.

I think I may just go for it, but I have a feeling they will seriously under-value my house and take me over the 60% LTV. If I hang on, the LTV will only increase as house prices fall further.

southantrim3

Why are the lenders charging such high fees for these products. £995 fee would take out most of the saving of the lower interest rate they are offering from what you may already be on. I'm not sure I can justify paying that if it was me.
Will this so called "quantative easing" help to lower fees and/or reduce rates further if there is more credit available, or will the banks use it to line their own pockets in further bonuses?

uzubairu

beecher wrote: »

- apart from the limited overpayments.

I noticed that too.

If I was in the market for a mortgage/re-mortgage, that would definitely put me off.

I would prefer a slightly higher rate with more reasonable/generous overpayment options, as I would be able to make more substantial savings overall in the longer term.

Currently overpaying approx £700 per month (78% of monthly payment) which I wouldn't be able to do with this product.

AntiLochus

beecher wrote: »

I said that, but I can't justify paying out £999 in fees when my SVR is 3.5%. I am still in wait and see mode but it looks like a good deal to me - apart from the limited overpayments.

Yep £999 is not cheap but it depends on your circumstances. For us it is a great rate and peace of mind for 5 yrs, therefore worth paying the arrangement fee.

Max 20% of monthly payment as overpayment is a little limiting - 10% of total mortgage outstanding each year would be better but this still allows us to overpay by £200/month - which for us is enough.

Their Homebuyer survey/valuation at £550 is OK as some lendors can charge up to £1000 for this. Also there is no redemption fee if you want to change to another provider after the 5 yr tie-in.