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6.34% Rate for 10 year fixed

Options
current fixed rate mortgage with the abbey is up end of this month. Just called them to inquire rate options they would have for us and they have offered a 10 year fixed rate of 6.34% with £199 booking fee. We have a 38,000 mortgage on a house worth £250,000 so lots of equity etc...

Is this a good rate taking into account the booking fee etc....

Any advice appreciated. ;D
«1

Comments

  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    did you really want a 10 yr rate ??

    If so There are cheaper around
    for exmaple

    Britannia
    Derby
    HSBC
    N&P
    L&H
    Woolwich

    some with "remtg fees " package

    but would need to number crunch even these will incur some fees
    ( ie Abbey to close, booking fee, minor costs)
    although even a small % per year would add up ovr 10 yrs

    ..
    Again though I ask do you really want 10 yr fixed?
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • divadee
    divadee Posts: 10,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    yes payless do want a 10 year fixed rate want to be able to know exactly how much we are gonna have to pay out need to for budgeting.

    ;)
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    OK

    then look at the deals on the comparison sites / or maybe the lenders listed and look at othrer rates
    comparing the set up fees

    its going to cost a bit to leave/ set new deal, even on a free legal/val deal, but if you get a good rate over 10 yrs , there could be savings - need to number crunch
    will depend on a number of factors (inc interst only or repay?, term outstanding)
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • divadee
    divadee Posts: 10,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I have looked at britannia and Leeds and holbeck and the fees involved are enormous britannia wanted over £1000 and l&h wanted about £800.

    I have got a standard repayment with 21 years left and would prefer to keep these terms the only other one i was interested in was A&L 5 year fee saver but would really prefer 10 year.
  • Woby_Tide
    Woby_Tide Posts: 5,344 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    http://www.moneysupermarket.com/Mortgages/MortgageDetailsNew.asp?id=4943&LENDER=1&TRUCOSTYRS=21&1MONTHPAY=263.13&APR=6.0

    15yr fix at 5.89%

    £285 valuation fee refunded on completion with £250 cashback according to details

    is there no way you can pay more off, seems a bit of an odd situation to lock yourself into such a long term for a relatively small amount compared to your house value?
  • divadee
    divadee Posts: 10,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    cant get that link to work woby tide can you tell me which lender it was with? ;)
  • Woby_Tide
    Woby_Tide Posts: 5,344 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    How odd, still seems to work on my PC, anyway it was Yorkshire BS

    Product Details
    5.89% Fixed until 31/10/2019
    Lender: Yorkshire B S
    Initial Rate: 5.89%
    APR: 6%
    Type: Fixed
    Until: 31 October 2019
    True cost over 21 year: £
    Monthly repayments: £263.13
    Lender's Base Rate: 6.3500%
    Portable : Yes
    Incentives: Total valuation fee will be refunded by the lender.
    Free Accident, Sickness and Unemployment Insurance for 6 months.

    Cashback: £250 paid to you on completion.
    Redemption Penalties: 5% of original loan before 31/10/2006, 4% of original loan next 5 year, 3% of original loan next 4 year, 2% of original loan next 4 year


    Product Costs and Fees
    Paid upfront Added to mortgage On completion
    Valuation Fee: £285.
    Booking Fee: £0
    Arrangement Fee: £0




    I've tried a !!!!!! version of it to see if that helps

    http://!!!!!!.com/4osh7
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Ok £1000 fees but based on pure interest
    its 0.65%pa cheaper than the abbey deal x 10 yrs would save much more

    he Norwich % Pete deal and poss some others have fee assisted products, which may suit your loan size

    the problem link to Woby's YBS deal may be due to cookies/ users ID as it does not work for me either

    however see

    http://www.ybs.co.uk/mortgages/current_products/products/589_fixed_311019_feeassist.jsp

    for lenders own page
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • divadee
    divadee Posts: 10,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    thanks for all the advice will sit down tonight and number crunch (oh what fun ;D)
  • DiggingOut
    DiggingOut Posts: 770 Forumite
    Something to consider here. If you can get a five year fix at a lower rate, you will have lower payments.

    If you are on repayment, you can shorten the term of the mortgage to a term that will bring the payments up to the level you would have paid on the longer fixed rate. This will reduce your mortgage balance more quickly, and even if rates are higher in five years, you will owe less.

    If you are on interest only, you can take the extra money (from the lower payments) and reduce the balance (if allowed without penalty) each month, or save it until the end of the fixed rate period, and then reduce the balance.

    After five years, you will need to remortgage again, but you will owe less, so even if rates are higher you might still be quite a bit ahead.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

    Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
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