The "Should I Ditch my Fix?" Calculator Discussion Area

dizzybuff

Thats more help thanks , looked into it .. looks like we may be in negative equity at the mo , so just have to stick it out . Otherwise I think we may have to stump up 8 grand or so to get a decent rate as most lenders only offering 70-90 % ..

MarkyMarkD

It's not really "stumping up" £8k, as any extra deposit you give is a reduction in what you are borrowing ....

dizzybuff

True true , but with our srunchy status it is stumping lol

johnbhoy10

Guys- I'm on fixed rate of 4.99% with YBS till end of feb 2010. My ERC will be 3% of oustanding (approx £2300) at the moment. I've being offered 4.69% with RBS for 5 years. There is arrangement fee of £300 which they have already taken but they pay all the fees. My query is what is the best way to get a true comparision over the next 5 years. The RBS calculation is easy but it's the costing of the YBS side of things i'm not sure about. Do i use

1) The current outstanding amount plus the ERC which takes me back to approx £80000

or

2)What would be the outstanding at end of feb 2010 (therefore no ERC to add).

Also i'm aware that is is only half the story as i need to work out balances at the end of 5 years. Am i on the right lines? If so, which YBS figure should i use.

Thnks

sarmia

Thats a good offer, how did they offer it to you, as it isnt on the website was it in branch?

johnbhoy10

sarmia wrote: »

Thats a good offer, how did they offer it to you, as it isnt on the website was it in branch?

Sarmia-i got it on the last day before it went to 4.99. I think arr fee and other conditions are still the same.

Also,i THINK i managed to work out my possible scenarios. Basically, if i stick with YBS till end of feb 2010 then i need a new fixed rate of 5.95 or less to be better off by staying with them. If rates go up and i can't fix at this or below then would be better going with RBS now. Problem is, RBS offer is to open to 3/10/09. Would they likely pull it before then if i stall? I have a fairly strong LTV (think it's closer to 60% than 75%). ARGHHH! What to do?? I notice from another thread about LIBOR rates falling.Are we all mugs?

MarkyMarkD

Johnbhoy10

I think you are just thinking too hard, tbh.

Your post also reads as if you've already paid RBS a £300 reservation fee. If so, why?

The first question is what rate your YBS mortgage goes back to in Feb 2010. If it's a cheap tracker, switching away from it either now or next Feb may be foolish.

Even if you are certain about switching, IMHO it is mad to pay a 3% penalty now,to switch to a rate which is virtually the same as what you are currently on.

What is putting you off waiting until August - all of 1 month away - then getting a remortgage offer valid for six months which you can use when the original deal expires?

johnbhoy10

Marky-the RBS took my fee about a week ago. I still haven't signed standard security the lawyers have sent me. I thought it to be a bit hasty. The fee was off before the valuation was done and therefore before they finally ageed to it. I only got my confirmation of being accepted on saturday(letter dated 3rd july). The current Svr at the YBS is exactly the same as my fixed rate of 4.99% which is fairly high is it not?

johnbhoy10

Has anybody has an offer like me but not gone ahead yet. The RBS have taken my fee of £299 and mentioned offer is open to 3/10/09. So i think i'll sit on it and wait maybe till start of Sept before deciding what to do. If i decide not to take i think i read i'll pick up valution cost as well but by then it will be less than 6 months before end of my current deal with YBS. Does anyone know what lenders(if there are any) keep their offers in place for six months. I may have being hasty with this and it's going to cost me a few hundred but at the time(a couple of weeks ago) this deal of 4.69% with fee of £299 was pretty much up there for a LTV of 75%. Does this sound like sensible way to proceed?

MarkyMarkD

Very many lenders' offers are open for six months. The best way to find out - and quite possibly to get the best overall deal - would be to use a mortgage adviser whose experience of lenders will help you quite considerably.