fixed rate for 5 years?

fossman

We are buying a New Build house off plan, we needed a mortgage offer in place to enable us to exchange contracts.

We currently have a mortgage offer from Alliance & Leicester, 2 year fixed rate at 4.59%. Thing is they are only holding it until 27 September 2006 and our house isn't due to be completed until December 2006.

We have been told that after the 27 September A&L will offer us their equivilent mortgage.

Going on the basis that mortgage interest rates have increased since we got our offer (only 2 months ago) I am considering bining our A&L offer and looking elsewhere, maybe even fixing for longer.

Joe_Bloggs

@fossman that is interesting commentary on your situation. I fear you will lose your offer of that fixed rate. Let's hope you did not pay any money for it.
How is the pile of bricks progressing ?
J_B.

fossman

Basically we were abit stuck, we needed a mortgage offer quickly as we only had 6 weeks to exchange contracts. As we are FTB's we only had two banks willing to offer us mortgages (Alliance & Leicester and Nationwide) so I went for the cheapest. I paid a £280 valuation fee (Nationwides was £285). We were not told that the mortgage offer would have a time limit when we paid the valuation fee.

They dug out the foundations last week and concrete is supposed to be poured in this week depending on which contractors are working due to the bank holiday, otherwise it'll be next week.

L_Tee_2

stanmoresaver wrote:

Assuming a similar price on the OP

Legal fees- £400 approx
Valuation- £300 approx
lenders Arrangement fee £500 approx
Deads release fee- £225 approx
Possible broker fee.

Some products will give you free legal and valuation services-but these tend to have a higher rate so it's worth checking out if it's worth paying (not adding) the costs up front- especially on a bigger loan.

IMHO- it's certainly worth engaging a broker to work it out for you.

hope this helps

SS

Hi,
Do these fees still apply if you remortgage with the same lender? So if you went for a 2 year fixed with nationwide, and then decided to do the same again at the end of the term?
Thanks.

herbiesjp

No - normally you would expect to pay a booking/arrangement fee to move on to your chosen scheme if you stayed with the same lender