2/3 Year Fixed Rate Mortgage

John_G66

Looking for something around 4.95% or under with NO fees. Any suggestions,
cheers..........

herbiesjp

Is this for a re-mortgage?

Gorgeous_George

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 I also condsidered a 10 tear fix later but, fortunately, it was withdrawn by the BS.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.



GG

John_G66

herbiesjp wrote:

Is this for a re-mortgage?

No House Move.

mabeline95

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 charges

MarkyMarkD

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).

John_G66

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.........

meanmachine_2

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.

mabeline95

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?

meanmachine_2

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.

mabeline95

there are quite a few comments about the tracker mortgage that The Woolwich are offering on other threads regarding administration etc!