FTB to end of fixed term to remortgaging with the Woolwich

d912mv

Hi,

I'm a first time buyer and agreed a fee today. I have a 15% deposit have come up with this theory, although would appreciate some advice:

I've seen a 2 year fixed rate mortgage with Woolwich. This is not the best rate on the market (5.79% and £1490 fee) although at the end of the 2 year fixed period it changes to 1.49% above the base rate. I have also been informed that Woolwich offer their existing customers very good deals to remortgage and it's rather easy to do so. for example, it looks like existing customers with 85% LTV can get 4.29% fixed instead of the 5.79% that i've been quoted.

My theroy is while i'll pay more in my first two years due to increase % rate and the large fee, this will be out weighed by the very competitive 1.49% above the base rate tracker and i'll also benefit from Woolwich's treatment of it's mortgage customers.

I'd appreciate some comments on that please, for peace of mind. I could probably save £2,000 over 2 years with another product although feel the benefits from Woolwich and the 1.49% above deal out weight this... is it that clear? or cant i see the wood for the trees? Am i missing something?!

All comments very much appreciated!

cheers
dan

_Andy_

I think your plan is high-risk and short-sighted.
You're banking on two things happening, neither of which are in any way definete

1) Woolwich will still have competitive offers for existing customers
2) Base rate is still going to be low

£1500 is a hell of a lot to pay for just two years.

d912mv

nudge... anyone else have any comments?!

I accept what you're saying and the fee does seem very high. I'm really confused, not sure what to do!