Good mortgage offer or not?

Roatfale

Hi, I'm new so please go easy

Our current rate is 0.20% above the variable (0.70% then). However we have just received an offer from the building society (Newbury) through the post today offering a rate of 2.99% fixed for 5 years. No set-up fees and unlimited overpayments.

Is this worth taking? Do people really think rates will go high enough and soon enough to justify taking this offer?

Thoughts?

Thanks in advance

TBeckett100

are you a troll. If you are genuine, take the deal, snap their hand off etc

smcqis

5 years fixed at under 3%...for sure 100% i would take that, thats the cheapest i can get now at tracker rate!!

Roatfale

Ok, the offer is a genuine offer. If I had a scanner I would scan and post the letter. We have been with them for a long time so I don't know if that counts for anything. Anyway, thanks for your advice. And I can assure you that I am not one of those things that live under bridges.

Thrugelmir

Is your current mortgage a base rate tracker .20% above BOE base?

When does this rate end?

Roatfale

Thrugelmir wrote: »

Is your current mortgage a base rate tracker .20% above BOE base?

When does this rate end?

Yes it is, 0.2% above BOE (might've cocked up my first post a tad there, apologies). I'm not sure when (or indeed if) it will end though, sorry.

We did have an 'independant' adviser round a few months ago but we decided not to switch as the 'best offer' he had for us wasn't that great so we stuck with Newbury.

This new offer is tempting but is only on the table for two weeks.

Also, they said we don't have to transfer the full amount to the new rate, just a portion if we like.

Leon_W

It sounds like they are trying to get you off of their suicidal tracker. Whats the rate after the 5 year fix ends ? Bet it's not 0.2 above BOE !

Thrugelmir

Leon_W wrote: »

It sounds like they are trying to get you off of their suicidal tracker. Whats the rate after the 5 year fix ends ? Bet it's not 0.2 above BOE !

My thoughts as well. People are attracted to the short term benefits rather the actual cost over a much longer time frame.

Roatfale

Leon_W wrote: »

It sounds like they are trying to get you off of their suicidal tracker. Whats the rate after the 5 year fix ends ? Bet it's not 0.2 above BOE !

Hmm, not sure, the letter is at home and I'm in work. It doesn't go back to being 0.2% above BOE though, that much I do know! It might be 4.15% or 51%, I'm not sure. I'll post the exact text of the letter later on, soon as I get chance. Thanks for advice so far though.

EDIT: Just spoke to my wife, she spoke to Newbury last year and they confirmed that we are on 0.2% above BOE for the term of the mortgage (20 years left).
This is no longer offered apparently and the adviser we had round about 6 months ago kind of gave up when we told him that and said we were very lucky.

Don't know if this helps

Leon_W

Quite Thrugelmir.

I would seriously question anyone that "advises" ditching a seriously low tracker rate for anything. In the short term it may be attractive but long term you will NEVER see such small tracker margins as those which were offered a few years back. Factor in remortgage costs after 5 years to switch again and you'll be onto a loser and the revert rate is going to be atleast 3% over base.

getmore4less

Stick with the tracker and overpay

base +0.2% won't come round for a long time if ever.

If they are really keen a better deal will be offered once they realise this one is not good enough.

I would want , no fees now and no fees for any future deal and a decent follow on tracker rate(not SVR) for any fix they offer you.