Britannia special deal - is it worth it?

TuftyMatt

I am with Britannia and my 3 year fix at 4.7% comes to an end in late August.

I hope when I get home today I find a letter like yours Scootar.

beecher

I would take the 5 year deal in a flash - I wish my lender would offer me a no fee deal like that! You'll be saving money over the next 6 months, and have security for the next 5 - what's not to like?

scootar

Hi everyone, I just checked the letter and the deal is a 5 year fix at 4.49 and 10 year fix at 4.89%. It is portable. So, from what is being said, I should go for one of the deals asap, it's just a question of whether it's 5 or 10 years? I'll try to figure out how much the difference in cost is with the .3% difference... I was reading other posts and there seems to be a general view to fix for 10 years if you can get a half decent rate, but people want "unrealistic" tates below 4%?

Cheers, Scoot

TuftyMatt

Scootar,

Nothing is unrealistic in these troubled times.

This time last year you would have been put in a straight jacket if you said interest rates would be at .5% in a years time.

As I said I would like to get the same letter as you but have you considered the fact that they could be looking at locking people in with long term deals now because the rates may come down even more in a few months time?

scootar

Fair point. Does anyone know what happens if I wanted to move house with the portable deal (e.g. increase the size of the morgage) or put my partner onto the mortgage? I am going to speak with britannia next week.

Also, some people have said the fact they are offering this kind of deal is dodgy - has anyone else been contacted offering this kind of deal?!

Cheers, Scootar

dimbo61

Its not dodgy if its coming from the britannia and you may be in negative equity already.
This gives you either 5 or 10 years security and both deals are good.
Are you allowed to overpay and how much in % terms ! ( ask the britannia when you ring to ask about the portability/ adding a new partner )

dimbo61

If you can keep the same payment each month you will also be reducing the term as you are paying a lower interest rate.
Just my views its up to you GOOD LUCK

sher9321

Scootar I received the same offer - spoke to Britannia and they said it was a pilot scheme and the rates are valid till the end of March. I am on two year fix at 5.49% which expires in November, am currently at about 75% loan to value but this was the value of my house before the crash so I think I am going to take the 5 year fix on offer as it seems good (I am tempted by the ten year fix but think it is too long a period to fix for????). I don't want to risk applying for a 75%/80% LTV mortgage with someone else and have a lot higher LTV after a re-valuation and hence a poorer mortgage offer.

I would welcome others advice! (seems generally positive so far in the rest of the thread)

scootar

That's really interesting - our circumstances are basically the same. I doubt we have a choice but to remortgage with Britannia, or go on to the SVR (which is high at 4.49% anyway, and likely to go up in the future). From the stories on here, valuations aren't generous compared to estate agents - the same house as mine is on at only 10k less than what they paid for it at the same time, but I reckon a mortgage valuation would be 25-30k less, and I can't afford 500-1000 pounds to find out.... I think it's a good deal as well having had the time to look in more detail. Right now, the trackers etc are bad deals at often 2-3% above base rate; it's ok for those on .5-2%. Obviously, it would be nice to have a better deal but given the ltv.... I am still considering the 10 year fixed rate - it's going to cost £30 a month more... but then what if house prices go back up and the LTV becomes more favourable and a better deal is available? Arghhh!!!!

S

sher9321

I agree it is either SVR or re-mortgage with Britannia

My two concerns are

1) Has the latest 0.5% cut in interest rates been reflected in Britannias SVR and other mortgage deals - I don't think it has

2) If credit becomes more widely available better rates maybe available in October/November or are the days of cheap credit gone?

I think I will go to application on the 5 year fix and use the 14 day period to see if anything happens regarding point 1. I will forget about point 2 for now

I probably should be fixing for ten years but I am not brave enough.