help help Virgin one discounted 4.99% apr ???

bustyb293

Hello

I have been looking for a new mortgage, and have come across this one, the Virgin one discounted (not the one where you have to have a bank account with them) anyway some are saying that the bank rate may drop a little soon so! this is a one year discounted, with no fees at all nothing! no valuataion or legal and nothing added to the loan.......its discounted to 4.99 for one year and you can move anytime, for nothing! sounds too good, well there is just a £75 closing fee..

so I was thinking get it 120K morg, if the rate does drop a bit then just jump to a 2 year fixed, and if it does go up jump as well, nothing to loose, it sounds really good...

Has anyone got any views of this Mortgage?

HelpWhereIcan

Obviously the main advantage of this deal is the fact that it costs nothing to switch and only £75 to get out at any time.

If you need to remortgage to a better rate now but want to wait and see what happens to fixed rates, it could be a good option for you. I have had clients use this product while they were waiting for a house to sell and while they were waiting for a new build to be finished.

However, if you are looking at this deal for the short term only, I would say that you normally have to have a particular date (within the 12 months) in mind to change again or be willing to accept that you will need to be proactive in making sure that you choose the right deal at the right time in the future.

Obviously, if fixed rates rise, you will lose out by waiting. So you have to decide - if your objective is to go onto a fixed rate, is the potential of possibly getting a lower fixed rate worth the additional hassle of another remortgage in the next 12 months and/or the risk of being left with a 'worse' fixed rate deal than you could get now. After all, fixed rates may fall, but arrangement and other fees may rise negating the fall.

Would you be better off on a capped rate if you want to benefit from any decreases while still having a limit to your rate?

While the One Account Flexible Mortgage Option is a good remortgage deal, it is not for everyone and I would suggest you speak with a broker to make sure that it suits your circumstances and objectives.

Hope this helps

bustyb293

Yes it sounds good, maybe not for brokers as I know the cut they give you!

but if you are not decided and want a get out while the rates dance around, it seems ok.....think I will go for it! yes

herbiesjp

bustyb293 wrote:

Yes it sounds good, maybe not for brokers as I know the cut they give you!

Not sure what you mean?

bustyb293

the man in the steets term for how much a broker gets for a new applicant, I know how much some get, on some items.....