Is 3.99% 5 year fix the lowest it will go ??

AntiLochus

Good Spot - info here:

http://www.natwest.com/personal/mortgages/g3/fixed-rate.ashx#tabs=3

Looks like that rate is only for existing customers changing deals, for new customers (buying a house) the best 5yr rate is 4.59%

Might be worth keeping an eye on them over the next couple of weeks though.

cbrpaul

yes good for existing Natwest Customers only and 60% ltv

Smiley_Dan

I'm looking for a 5yr fix and I discovered the A&L offer today independent of this forum, I think it was referenced in a post on the Motley Fool. I have to say, when I was talking to the bloke about it in the call centre I couldn't quite fathom what the catch was... The only 'real' one in my opinion is that the overpayment scheme is a little convoluted; you can only overpay in January (without a charge) up to 10% of the balance and interest is calculated monthly.

On the question of waiting, I see this in a similar sense to stock market investment. It is impossible to time entry to the stock market, because the system is too complex to understand. The best way of proceeding in a none speculative, conservative manner (i.e. to literally keep the roof over your head!) is to attempt to judge value, cost, risk and a high enough likelihood that over a medium term horizon you will be better off than today. In a more benign and less volatile economic environment I would say that inflation projections and interest rate movements would be more predictable than the stock market, but we aren't in such an environment right now and so I really think trying to predict where we will be is a dangerous game. This is made even more the case because of where we are in the bigger picture: both gilt yields and base rates are historically low. For this reason I am of the opinion that I should go for this mortgage, as any further reductions will be limited, the costs very low and it gives good security over the medium term.

adandem

Smiley_Dan wrote: »

The only 'real' one in my opinion is that the overpayment scheme is a little convoluted; you can only overpay in January (without a charge) up to 10% of the balance and interest is calculated monthly.

.

I was told upto £499 pcm PLUS 10% per annum

sandspider2000

It seems to depend on the amount you borrow or monthly repayment - some people get both, some get just the yearly overpayment in January. My Keyfacts document states both.

Smiley_Dan

Interesting; we're about 55% LTV. Is it if it were lower they'd offer more flexibility with overpayments?

sandspider2000

If you have a look at the recent A & L thread there were various posts on there of the amounts people borrowed and how much they were allowed to overpay. My LTV is around 40% I think...

blakea8k

A&L have withdrawn the 3.99% rate with no fee and replaced it with a 3.95% rate and £995 fee

neil40

blakea8k wrote: »

A&L have withdrawn the 3.99% rate with no fee and replaced it with a 3.95% rate and £995 fee

This is for purchase only- not remortgage.

WestonDave

HSBC have a 3.99% 5 year fix with £999 fee on remortgage but its not as good as the A&L one. I suspect someone in Santander pointed out that A&L and Abbey were competing against themselves and costing the group as a result.