Britannia special deal - is it worth it?

aiberdeen_2

just been through the application process with a rep, having received a letter yesterday, and I favour the 5 year 4.49% fix also.

Now the BoE rate is at 0.5% I don't think we'll see Britannia lower their SVR.

From their point of view they will be looking to retain customers and the waiving of the early repayment coupled with no 'product fee' is enough for me, £1500 - 2000 saved on top of £40 off my monthly payment it is pretty much a straight-forward decison for me.

caracal_77

Keep thinking what makes Britannia offer this. They must think interest rates will remain low for the next few years. after all, they're not charity, they're here to make money. It won't even be to retain customers (in the OP case), as he's probably close to 100% LTV and won't have many choices when the fixed period is over.

latecomer

Perhaps they are just worried about people switching to other lenders and want to get in early.

aiberdeen_2

Fair points LC & 77, although Britannia are one of the last mutuals on the go and I feel their rates are often less competitive for this reason - responsibility to members to be considered and the like.

I still feel it's too tempting to resist because rates can't get much lower.

There is a case to argue that with a SVR of 4.49% they do have scope to lower them is they so wish.

arowlands

Scootar, in your position I'd be jumping at the 5 year deal (although don't hunt me down if rates have rocketed by 2014!!), & if your job situation is as stable as you said, why not talk to Britannia about maintaining your current repayment over a shorter term on the "new" mortgage? That would save you thousands over time.

Equally, as others have pointed out, if anyone had suggested Base Rate would be 0.5% today, even as recently as September, the men in white coats would definitely have been on the doorstep! So, a 10 year fix at 4.89% is hardly what you'd call a bad long-term deal. I remember my parents fixing at 9.99% because they knew the repayments were affordable but would struggle if they rose - rates did nothing but fall for 5 years, but at least they knew they could keep a roof over their heads.

Ultimately it's going to be a case of (not!!) paying your money & taking your choice, but once you've done it, don't look back - just enjoy the fact that you'll know exactly where you stand for a good while.

Just my humble opinion....

gitch01

hello guys
i am just renewing with britannia taking the 10 year fixed at 4.69%.
i have to pay an arrangement fee of £549
i only have £38,750 ish left on my mortgage and 12 years.
so its not worth me moving anywhere else or taking a tracker as there are no real savings to be had.
when i spoke to britannia a couple of weeks ago they did not have any plans to reduce their rates, althouth that was before the latest 0.5% cut. But they still haven't done anything

scootar

Hi everyone, I've opted to take the 10 year deal. It costs about £30 a month more than the 5 year. The only thing I hadn't really considered is whether in 5 years I'll be in a much better ltv position (hopefully the mortgage should be a lot smaller) and thus able to get a better deal than 4.89%... ah well, you never know what's going to happen and it's peace of mind.

Thanks for all your comments!

Cheers, Scott