feeling a little stupid???

cmac

hi
sorry for maybe sounding really stupid but here goes
ive been offered a rate of 4.49 with abbey from a broker - london & country
but have seen 2.99% advertised with £900 of fees
I really cant work out which one is best both are fixed for 2 years so does the £900 in fees cancell out the 2.99% rate ???

thank you in advance

beecher

What's your LTV? I can only assume that the 2.99% is for people with maybe 60% LTV, and yours is higher?

Peelerfart

Depends on how much your borrowing....

cmac

thanks for replying my mortgate is 92K house worth approx 200K

maninthestreet

1.5% x 92k = £1380 saving, minus £900 fees = £480 saving, compared to the 4.49% mortgage.

Robert_Sterling_3

maninthestreet wrote: »

1.5% x 92k = £1380 saving, minus £900 fees = £480 saving, compared to the 4.49% mortgage.

But it is for 2 years

So 1.5% x £92,000 x 2 = £2760
Take of £900 fees leaves £1860 rather than £480.

Gorgeous_George

Assuming no other fees and adding the £900 fee to the 2.99% mortgage you will pay:
£440.06 per month for two years at 2.99%
£510.84 per month for two years at 4.49%

After two years you will owe:
£87,748 (on the 2.99% repayment mortgage)
£87,824 (on the 4.49% repayment mortgage)

That makes a saving of £1,775 over two years with the 2.99% deal.

Are all other things equal? For example, what happens after two years?

Maybe the 2.99% deal wasn't available to your broker.

I wouldn't fix for two years but, each to their own..

GG

Mr_E_Man_2

Do either of them give you a free survey and legal fees or cashbacks?

Tiddler_2

The 2.99% deal is not available to brokers - checking the Abbey website I can only see one 2.99% deal which is available at 40% ltv, with a £599 fee payable upfront. BUT

to get it you have to be a Abbey current account holder for over 12 months with £1000 credit & at least 1 DD going out.

So looks like a headline rate gimmick that will be available to very very few people imo.

toonfish

you can get 3.95% fixed for 5 years with Abbey if you go direct

payless

worth reading http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5775156.ece

extract

We posed as a first-time buyer with a 40 per cent deposit, looking to buy a £190,000 flat in London, and spoke to John Charcol, Savills Private Finance, Hamptons International, London & Country Mortgages, Alexander Hall and Cobalt Capital.
None of the brokers recommended the market-leading deals for borrowers with large deposits, nor did they explain that a great number of deals are only available directly from lenders. Louise Cuming, of Moneysupermarket.com, the comparison website, says: “Brokers who claim to be 'whole of market' should make it clear to borrowers that this does not include some of the most competitive mortgages available directly from lenders.

Personally I would say if you are using a broker then also check out the marketplace yourself OR make sure your broker will be impartial and look at all the deals ( "true whole of market" as opposed to Whole of market ?? ) - In most cases expect to pay a fee though to get this impartial view as there's nothing for nothing in this world ( £99-£200 seems the norm - sometimes refunded if you actually complete a commision product )