Post Office Mortgage being pulled

Incredible-plod

Hi guys and gals

Regulars here I am sure are aware of the decent 4.15% and the 4.35% fee assisted rates over 5 years.

Having just plumped for the latter myself I was told that the application has to be back by the 27th as the products are being pulled on this date. I was not told what will be replacing them but by current trends it will probably go up.

A note too about the 4.15% - The fees amount to a huge sum in the end. Yes the fee is £599 but the valuation for me was £310 and local solicitor quotes were over £500 inc all fees and VAT. Going with the 4.35 and just paying the £599 worked out for us at only £120 over the 5 years. This is something I'm prepared to pay to save emptying my savings with the fees payable.

The offer is valid for 6 months too so if things do go down you are not committed.

Hope this helps someone.

Vertigo1

It may be valid for 6 months but a lot of the fees are non-refundable and the rates would have to drop a hell of a lot to outweigh the loss of the fees

moneysavinmonkey

Just to confirm the OP's post really. Went through AIP today and chap I spoke to told me that the mortgage were being withdrawn shortly and if I wanted the deal my application would have to be faxed in by 5pm Monday 18th.

Similar Experience with the fees: Valuation would be £280 on top of the £599 product fee. There is also a fee of £120 charged upfront but payable on redemption (exit fee?). is it a coincidence that these add up to £999!!

matt987106

moneysavinmonkey wrote: »

Just to confirm the OP's post really. Went through AIP today and chap I spoke to told me that the mortgage were being withdrawn shortly and if I wanted the deal my application would have to be faxed in by 5pm Monday 18th.

Similar Experience with the fees: Valuation would be £280 on top of the £599 product fee. There is also a fee of £120 charged upfront but payable on redemption (exit fee?). is it a coincidence that these add up to £999!!

i guess this is may ? ? ?

RufusA

I'm guessing the month of May as well!

However these will be the dates that that particular individual needs to return the fully completed application form i.e. 30 days from their AiP.

When I last spoke to Post Office Mortgages (aka Bristol and West) yesterday, I was told by the advisor that there was a limited availability, BUT they didn't have a specific date when that particular fixed rate was being pulled and had no information as to whether subsequent offers will be better or worse.

Based purely on what other lenders have done, I'd say try and get an AiP ASAP if you are interested in the Post Office deal. Once you have an AiP whilst no guarantee you'll get the mortgage, it at least puts a reserve on the offer so you have 30 days to decide even if they won't take new applicants from tommorow!

To give you an idea of what other lenders have done, most have increased their 5year deals by 0.3 - 0.5%, and in some cases increasing application fees.
One of the best offers last month - Alliance and Leicester 3.99% no fee mortgage fixed for 5 years is now a 4.89% with a £299 fee!

There is also a possibility that changes in the Budget tomorrow may have an impact (for the better or worse) on mortgages!

YMMV, your home is at risk..... etc.

Rufus.

Incredible-plod

The fee is only payable on completion. So if you get your application in before 27th May 2009 you can keep your offer for 6 months to wait and see what happens without laying down a penny.

With all the fees the 4.35% works out about the same. As stated, in my case the difference was £120 over the 5 years which is £2 a month. This is worth paying so I do not outlay any money upfront.

Note though that this may not be the same in everyone's circumstances but generally the difference is not a lot.

MISS.R_3

This is really bad news. We are desperately trying to find our first home and was hoping to take out this mortgage when we did. Those of you who have been given withdrawal dates, was this done over the telephone? I was thing of calling and asking for an AiP. I can't see any of the staff in my local branches giving mortgage advice!

confused31_2

its gone now they have a new deal but you need 40% deposit and the rate is 4.45%, im glad i got in when i did.