Britannia's offer

Scottie_dog_2

I have my mortgage with Britannia at 4.89% fixed until next March. (this payment is easily manageable.)
They just called me and offered me a new deal, which would start straight away, no fee, and the choice is:
3 year fixed at 4.29%
5 year fixed at 4.29%
10 year fixed at 4.59%
I have 15 years to pay on my mortgage
I'm more likely to go for a 3 or 5 year fixed, but should I take them up on this offer? Is it a good one, in the current financial climate?

beecher

I'd jump at the 5 year fix at 4.29% with no fee, but it depends on the size of your mortgage and your LTV. Also, have a look at what you are supposed to go onto from next March - is it a tracker or the SVR? If it is a low tracker, you'd have to judge where you think base rates will be next year, and your attitude to risk before making a decision.

unite79

Blimey, this makes little sense to me, they are prepared to let you move product to a lower product 0.6% - 11 months early with no penalty and no fees - I'd also jump at the 5 year.

Scottie_dog_2

I have to pay £55,000.
The house is worth around £200K.
Am I right in thinking my LTV is 27.5%?
I am not locked into any thing from next March though.

beecher

You're not locked into anything, but what rate would you go onto in March if you did nothing? Check your documentation to see. The only reason I ask is I don't understand Britannia doing this unless they think they'll lose money if you stay on your existing deal.

unite79

Beecher, that's exactly what I am thinking - and what Crystal ball has the decision maker looked into!

Scottie_dog_2

beecher wrote: »

You're not locked into anything, but what rate would you go onto in March if you did nothing? Check your documentation to see. The only reason I ask is I don't understand Britannia doing this unless they think they'll lose money if you stay on your existing deal.

I'll check, but in the past when my rate ended, I was able to choose which ever deal they had at the time - I always chose a fixed, but there was always a fee.
If I did nothing then it would automatically mature to the standard variable mortgage.

dimbo61

Have you considered the 10 year fix and reducing the term to 10 years !
On " whatsthecost" £55,000 over 10 years at 4.59% costs £572.40 a month.
Mortgage free 5 years early and no more fees to remortgage plus you know how much interest you will pay on the rest of your mortgage/debt.
Just an idea !!! GOOD LUCK
both the 5 and 10 are good deals.

Scottie_dog_2

dimbo61 wrote: »

Have you considered the 10 year fix and reducing the term to 10 years !
On " whatsthecost" £55,000 over 10 years at 4.59% costs £572.40 a month.
Mortgage free 5 years early and no more fees to remortgage plus you know how much interest you will pay on the rest of your mortgage/debt.
Just an idea !!! GOOD LUCK
both the 5 and 10 are good deals.

Thanks a lot - that's very interesting. I think £572.40 a month maybe a little too much for me at the moment, but it's certainly worth thinking about.