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2/3 Year Fixed Rate Mortgage
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John_G66
Posts: 347 Forumite


Looking for something around 4.95% or under with NO fees. Any suggestions,
cheers..........
cheers..........
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Comments
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Is this for a re-mortgage?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Over 2 or 3 years you need to be mindful of fees for this and fees for that. They could outweigh any potential savings.
I once took out a 5 year fix and watched IRs fall. The cost of moving my mortgage far outweighed my 'losses'. I also condsidered a 10 tear fix later but, fortunately, it was withdrawn by the BS. I'm on a flexible base rate tracker at BR +0.75% for life and have BTL at BR +0.89%. Both seem reasonable to me and I won't be funding holidays for solicitors, IFAs and the like by paying the multitude of fees incurred when transferring between mortgage products.
Good luck.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Hi
I've just re-mortgaged with The Derbyshire 3 year fixed 4.89, no fees, valuation or legal fees. I think the rate has increased now to 5.39%.
Britannia are doing 2 year re-mortgage at 4.94 fixed with only £99 arrangement fee.
Woolwich are doing a lifetime tracker mortgage at Barclays Base rate +0.19, currently 4.69, no application fee or early repayment charges0 -
Swap rates make a 2 or 3 year fixed rate of 4.95%, without fees, completely unprofitable for the lender, so you will be lucky to get anything this cheap.
Whether "no fees" is worthwhile depends on the size of your loan; if it's over a certain amount (normally between £60-100k) then it's normally better to pay fees and get a better rate.
If your mortgage is small enough to make "no fees" worthwhile, it's probably better to take Georgeous George's advice and go for a long-term tracker rate rather than chase short-term rates.
The Woolwich product is definitely not profitable (for them) and therefore an absolute bargain, but it's restricted to loans under 75% of the property value which excludes a large proportion of house buyers (and an even bigger proportion of first time buyers).0 -
MarkyMarkD wrote:Swap rates make a 2 or 3 year fixed rate of 4.95%, without fees, completely unprofitable for the lender, so you will be lucky to get anything this cheap.
Whether "no fees" is worthwhile depends on the size of your loan; if it's over a certain amount (normally between £60-100k) then it's normally better to pay fees and get a better rate.
If your mortgage is small enough to make "no fees" worthwhile, it's probably better to take Georgeous George's advice and go for a long-term tracker rate rather than chase short-term rates.
The Woolwich product is definitely not profitable (for them) and therefore an absolute bargain, but it's restricted to loans under 75% of the property value which excludes a large proportion of house buyers (and an even bigger proportion of first time buyers).
Mortgage will be for 60k, I'm putting in 110k. Thanks for tips so far.........0 -
Whoah there horsey!
That Woolwich tracker tracks the "Barclay's base rate", whatever the hell that is, not the bank of england rate.
Therefore it might not be profitable now, but what's to stop them putting up the "base rate" whenever they like?
Sounds dodgy to me.
Never get a mortgage that's discounted off the SVR, always off the official MPC base rate.0 -
Never get a mortgage that's discounted off the SVR, always off the official MPC base rate.[/QUOTE]
can you please advise what SVR and MPC are short for?0 -
SVR is standard variable rate - the higher rate that the lender hopes you'll fall back onto and continue paying, instead of re-mortgaging.
Most SVRs are around 6.5%
MPC is the bank of england - they set the official English bank base rate - currently 4.5%.
The Barclay's base rate could be anything Barclay's wants it to be, by the sounds of it.0 -
there are quite a few comments about the tracker mortgage that The Woolwich are offering on other threads regarding administration etc!0
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