RBS 5Yr fix @ 4.69% (£299 fee)

elDeeJay

With our fixed rate ending in a few weeks I've been looking at 2, 3 & 5 year fixed rates. I'd almost gone for an A&L fix 2Yrs @ 3.79% (with £995 fee) then saw RBS have a 5yr fix at 4.69% with only a £295 fee (Details here). I rang them up, its still available and there are no solicitors fees or valuation fees, so I was just wondering what people thought of this offer, or if they'd seen anything better? Our LTV is about 72% at the moment...

I like the idea of the extra security over five years, so this is really appealing.

Thanks

Details here

Vertigo1

I'm thinking much the same at the moment.

deano72_2

just gone for something pretty much the same with the abbey 4.59% £450 fees with £250 cash back free evaluation

elDeeJay

Just got off the phone with HSBC. They have a 5yr fix at 4.39%, with £999 fee (payable up front) which Im opting for now I think.
Cant see the five year rates dipping below 5%, so happy with this rate

TEDDYRUKSPIN

The LIBOR has dropped dramatically to 1.7% I believe today. Expect rates to drop another 0.2% soon. Banks/building societies should be able to obtain cheaper fixed in 2 weeks to 4 weeks time.

In my opinion, that £295 fee is grabber if you really like 5 years fixed.

opinions4u

TEDDYRUKSPIN wrote: »

The LIBOR has dropped dramatically to 1.7% I believe today.

And has the rate for longer term lending (rather than overnight or 3 month rates) dropped?

Expect rates to drop another 0.2% soon.

Short term rates dropping will not in any way shape or form affect the rates for longer term lending.

Banks/building societies should be able to obtain cheaper fixed in 2 weeks to 4 weeks time.

I don't share your crystal ball. You may or may not be proved right. Indications at present are that fixed savings rates for 2 years and longer are rising. That's not an environment that suggests 5 year fixed rate mortgages are likely to fall in cost.

Jacka87

There is quite a split throughout the forums as to what to do with long term fixes.

The first opinion is that BOE base rate is at its lowest point in history and the fixed rate deals seem to be rising so fix now!

The other opinion is that LIBOR and swap rates seem to be considerably higher than the boe base rate and thus they really should begin to drop and this will get passed on to the long term fixed rates. On top of this arguement is that whilst you wait, you can sit on the svr or get a no ties tracker and enjoy bargain rates, allowing you to overpay and reduce the mortgage cost.

The decision is for every individula but basically its which way does your own crystal ball point you. Though going with the fix now will always give you peace of mind.

jay3_2

Hi all, the fixed vs variable debate rages on... Daft question: is it possible to split a mortgage to hedge your bets, with a portion that is fixed, and a portion on a tracker? Assuming this is with the same lender of course. This would enable you to pay down the tracker portion if you wished.

opinions4u

jay3 wrote: »

Hi all, the fixed vs variable debate rages on... Daft question: is it possible to split a mortgage to hedge your bets, with a portion that is fixed, and a portion on a tracker? Assuming this is with the same lender of course. This would enable you to pay down the tracker portion if you wished.

Yes. But it depends on the lender. Two products = two product fees though.

Many fixed rates allow repayments of capital too.

jay3_2

Thanks - My lovely, lovely tracker at BBR + 0.24% ends next month (sob!), and I've been looking at First Direct's offerings. My inclination in the past has always been to go for a flexible tracker, as I tend to have lump sums coming my way which I use to pay the loan down. I just sense, like many others, that there are some nasty inflation problems and IR rises on the horizon. I just wish I knew how far away the horizon was!