Remortgage - is this a good deal?

lakelady

I've been paying a fixed rate of 6.75% for 5 years, which has obviously been a poor deal.  The penalty period ends in October, and I'd like to book something soon, in case rates rise again.

I've seen a mortgage with Coventry BS, which is offering 4.8% on a variable rate which is guaranteed not to go higher than their SVR for the length of the mortgage, calculates interest daily, and has no redemption penalties.  It would cost about £450 to set up, however, which seems a lot.
http://www.remortgages.co.uk/frame_rates.asp?si=74C30304-D674-47EC-81CE-DEBAF46A6EC4

It's the first one listed.

I am looking for a repayment remortgage of 68k on a house worth about 275k, over 15 years.  I'd like a certain amount of security against rate rises, but am very wary of tying myself into another deal which turns out to be expensive.

Any advice would be appreciated.  Does the Coventry deal look attractive, or does anyone know of a better one?

Mortgage_Master

Hi Lakelady,

It really depends on your priorities. If they keep to BOE + 0.3% the deal itself is excellent, especially for somebody that doesn't want to remortgage every so often, although it won't give you the protection you mention against any future interest rate rises. Also bear in mind, they haven't yet factored in last Thursday's BOE rise, therefore I expect their rate to rise to at least 5.05% very shortly. It doesn't have any tie in period which is a bonus.

On the downside, this deal isn't suitable for those looking for the budgeting certainty of a fixed/capped rate, and those who are prepared to remortgage every so often may get a better deal elsewhere.

lakelady

Thanks for your advice. I'll look about for a bit longer before deciding.