49% Mortgage.

shaz77_2

I'm looking to borrow 60K, however I want to have the option of overpaying every month without incurring penalties, what is the best 5 year fixed rate mortgage currently available to me?

Thanks in advance.

BritRael

I don't know about 'the best', but I had an interest only mortgage from Nationwide a few years ago which had no penalties (which is why I chose it ).
The only niggle that I had with them was that every couple of months I would pay off 5-10k, and although this sum was immediately debited from my flex account, it was not updated on my mortgage account until several days later. When I queried this, they assured me that this was factored in to the remaining balance.

Either way, now paid off. Yippee!!

slipthru

You could take a look at the co op 5 year fixed at 4.99%, you have the option to overpay a % on that.

How much are you looking to overpay by?

shaz77_2

Thanks Guys.

I would like to have the option to overpay around £100-£200 each month.

getmore4less

How many of the 5 years do you think rates will stay low?

The loan is relativly small so renewal fees play a big part make sure the follow on rate is competative.

If you think rates may stay low for a bit then rise here is an example where the base rates stay below 1% for 2 years then rise.

£60k 25y. (NOTE: difference in fees needs to be factored in but with the tracker there are only one set)

5 year Fix 4.99% £351pm

At the end of 2 years you have £57,456.22 outstanding
At the end of 5 years you have £53,131.39 outstanding

FD offset tracker 2.95% lets say 3.45% for 2 years, £299 to factor in a small rise in the first 2 years

Now if you pay the same as the fix £351
At the end of 2 years you have £55,571.33 outstanding
At the end of 5 years you have £48,329.03 outstanding

Now if rates rise after 2 years
To be worse off on the tracker than on the fix the rate needs to go to over 6.25% thats a base rate rise of 3.3%.

The longer the base rate stays below 1% in the first 2 years and below 3.8% in the next 3 the more you save.