5 year fixed?!?

Ex_Gas_Guzzler

Our 4.89 was coming to an end couple of months ago and cause i messed about and couldn't decide what to do i missed a 3.99 5 yr deal with A&L who im currently with.
I rang them and said i was shoppping around after missing that deal and they offered me deal that wasn't listed on the website at 4.59 over 5 £395 fee. our ltv is quite low.
Its was well worth a call and worked out not too bad in the end.

chrissoton

6% for a five fix is a total rip off when libor is low!!! you might as well give them a cheque for 20k and get the pain out of the way early,these banks and BS should befined for taking the p-ss instead of packaging a decent five year product and making a reasonable profit the banks just want to shaft us all, all under a labour goverment!!!you couldn't make it up

mark55man

KazLA wrote: »

Sorry, I'm not able to help with your question, but have a similar one to ask, so hope it's ok to do so here...

The majority of our mortgage is on a fixed rate with Britannia of 4.39% that is due to finish Dec 2010. They called last week to offer us a 'deal' where we could extend that rate for another 5 years, starting now - so basically staying at the same rate for an extra 'nearly' 4 years.

I'm very tempted to go for it, for several reasons -
-I like the security,
-It is fee-free,
-It seems a reasonable rate for a fixed rate,
-It will save us having any hassle trying to sort out a new rate next year,
-Their variable rate that we would end up on seems to be 4.24%, so not a great deal better.
-My earnings have more than halfed (due to having a baby and only working part-time) since we originally took out the mortgage, so I think I am perhaps more likely to get the go ahead on this, and worry that we may not be able to get a 'new' mortgage when the time comes.

But - am I doing the right thing??

Housesitter - seeing above that you are planning to fix at 4.39% is encouraging!

*IMHO*
Go for it. been watching for months there's not been much better for a while especially with no fees.

The other view (applies to OP as well) is to go onto the SVR at the moment which could be lower, and then watch the rates like a hawk, there is slowly growing competition forcing rates down, and inflation worries forcing things up in the long term. However, you need to be ready to move in a flash when the mortgage rates start going up which will be soon after the BoE rates do so

housesitter

I've not moved yet, my mortgage fee will be going up from 499 to 999 in Jan when the offer expires. I don't expect to move before that.

Did you take the Britannia deal ?

dimbo61

Hi KazLA
The security of another 4 extra years at 4.39% with no fees and a baby on the way seems a no brainer to me.
If you have no plans on moving and your OH left to pay the bills it gives you one ( huge ) less thing to worry about next year.
Overpay if you can and build up an emergency fund GOOD LUCK

KazLA

Thank you for all your replies, yes, we took the Britannia deal - Thanks again, wouldn't have done it without all your advice!

Gorgeous_George

chrissoton wrote: »

6% for a five fix is a total rip off when libor is low!!! you might as well give them a cheque for 20k and get the pain out of the way early,these banks and BS should befined for taking the p-ss instead of packaging a decent five year product and making a reasonable profit the banks just want to shaft us all, all under a labour goverment!!!you couldn't make it up

So much anger. I'm sure banks and building societies will be happy to offer a mortgage for the past 5 years at slightly more than LIBOR 2004-2009. Unfortunately, hindsight only works one way. How much have you got that I can borrow? Shall we call it 2%? And there's no need to open a string of High Street stores and a I'll manage without on-line banking.

If you think Labour are bad, see what happens IF the tories win the next election. I look forward to reading how happy everybody is in a year or two's time. The grass is always greener...

GG

housesitter

That's another reason for fixing long term

mbailey

4.39% for 4years - nice! Wish I could find one of those now!