Britannia 3yr or 5yr fix?

JAZ63

Hi alesanamurphy,
that is the same deal we have just come off (back in Jan though )

I would definitely go for the deal you have been given, if you dont want it

CAN I HAVE IT !!!! ha ha ha

ps great thread you started here

JAZZ

RP72

alesanamurphy wrote: »

Actually it looks like you're in a better position than me with a better LTV.

Our combined salaries are £52,500, and I've only been with Britannia since I started this mortgage 2 and a half years ago, so it seems strange they can't offer you the 3.99%

Did you do any negotiation or did they offer 3.99% straight off? I'll try my luck at getting that on Monday.

alesanamurphy

I initially had a letter, but it didn't quote the rate.

I rang as I thought the fact it was 'fee free' sounded good anyway, especially as I would have to pay a 1% penalty to get out of the mortgage and no doubt pay a grand fee to get another!

They quoted the rate when I rang, I'm just umming and arring about whether to go 3 or 5 years......

alesanamurphy

I've decided to go with the 5 year fix after reading all your advice.

I think the security of being tied in for 5 years is reassuring in the current economic climate, and can fixes really get much lower???

RP72

I agree 5 year fix is the way to go right now. Britannia have been good to me so I'm happy to stay with them, and I like to overpay by £499 a month as allowed.

Even if you could get a fix of 3.69% which I'm sure won't happen it'd only be a saving of about £15 a month and I wouldn't risk losing the 3.99% deal for that.

alesanamurphy

I can probably afford to overpay by about £100.

Is it better to do just that (in the knowledge I can cancel the overpayment if I need the money),or to increase my monthly payment by £100 and reduce a few years off the loan?

It will apparently cost £50 to reduce the term of the mortgage?

Vertigo1

Has anyone who's not previous received this offer managed to get it via calling them?

Been with them for ten years, good LTV of around 60% and fixed rate ended in Jan (currently sitting on SVR) so not at all happy that I've not been considered for this offer tbh!

Scaredy_Cat_3

alesanamurphy wrote: »

I can probably afford to overpay by about £100.

Is it better to do just that (in the knowledge I can cancel the overpayment if I need the money),or to increase my monthly payment by £100 and reduce a few years off the loan?

It will apparently cost £50 to reduce the term of the mortgage?

I'm in a similar position. Just applying for a mortgage with Chelsea and contemplating reducing the term slightly. They also charge £50 each time you reduce the term, but I think I can avoid this. I can overpay each month and while this extra is taken into account, it won't actually reduce the term. The effect it will have is that at the end of the year they will recalculate and will request a lower monthly payment from me, keeping the term on track. I can then continue to overpay each month, safe in the knowledge that it is reducing my mortgage balance.

I see the problem of not reducing the term as only being an issue if I was planning to stay with Chelsea forever. I'm not. This deal is a 5 year fix and I fully expect to move elsewhere for a better deal at the end of the 5 years. So at that point, although my term will show 18 years (or whatever), the mortgage balance will be lower and I will just get my new mortgage quotes based on that balance, and specify whatever term I choose. Does that make sense?

I'd really appreciate comments on that in case I've missed something obvious.

The other issue which relates to your comments, alesanamurphy, is that I am wondering if I should reduce my term right now, before the mortgage actually starts, or just make the overpayments each month. I think I'm going to make voluntary overpayments each month because that way if I do find it tough I can stop the overpayments and won't be in trouble, but if it was already set as my standard monthly payment it might cause problems.

Vertigo1

Just spoken to them and got much the same response as Jaz. They're refusing to make the offer available to me despite being a good customer for 10 years with good equity.

Told them in no uncertain terms that I'm not at all happy with this, especially when they make so much of their "rewards" for loyal customers. It's being escalated and someone is supposedly calling me back later but, unless they offer me this deal then I'm leaving on principle and never going back. This is a total slap in the face to loyal customers.

cal1_2

I'm thinking the same vertigo1:mad:. I am presently 'on hold' on the telephone waiting to speak to someone about this so-called pilot scheme. I'm not impressed at all! I'll let you know their response:rolleyes: