FTB Mortgage - free valuation wanted

Jonesy_McJones

Been looking (myself and IFA) for a 75% LTV mortgage that has a free valuation (not refunded valuation cost as it's possible the sale won't complete). Am looking at 2 year fixed rate. Would also like the option to overpay if possible.

Best ones so far are
3.89% with £1k arrangement fees (can make overpayments)
3.59% with £1k arrangement / product fees (cannot make overpayments)

Can anyone beat these for me please?
:beer:

andrewmp

Britannia BS

3.19%

£849 arrangement fee. You have to pay the £135 valuation fee though.

VIGILANT22

andrewmp wrote: »

Britannia BS

3.19%

£849 arrangement fee. You have to pay the £135 valuation fee though.

plus a non-refundable booking fee of £150

andrewmp

VIGILANT22 wrote: »

plus a non-refundable booking fee of £150

Indeed, not a bad deal though. I don't think a two year fix is worthwhile either, each to their own though.

Jonesy_McJones

andrewmp wrote: »

Indeed, not a bad deal though. I don't think a two year fix is worthwhile either, each to their own though.

Please explain - I'm new to all of this!!
Is that because you think that after the two years, it will be hard to remortgage at a decent rate because rates will have gone up? Do you think a longer term might be better?

andrewmp

Jonesy_McJones wrote: »

Please explain - I'm new to all of this!!
Is that because you think that after the two years, it will be hard to remortgage at a decent rate because rates will have gone up? Do you think a longer term might be better?

In my opinion, interest rates will not rise much in the next two years, obviously I could be wrong but.....

ING Direct do a lifetime tacker, BOE base rate +2.39% (so currently 2.89%). The arrangement fee is only £500, you'd have to pay for valuation and £195 booking fee though. There is no early repayment charge either.

If you want the security of a fix (can make sense if you can't afford your mortgage payments at a much higher rate in the future) then you should really be looking beyond two years.

As you mention, if you go on a two year fix and your LTV increases between now and the end of the deal, you may find it hard to get a new deal at a decent rate.

If you do want a longer term fix, Darlington BS offer a 5 year fix at 4.99% and Britannie offer a 10 year fix at 5.29%. Obviously your initial payment would be higher (due to the historic low BOE base rate) but you'll know what you're going to have to pay for the next 5 or 10 years. You could look at it as insurance against BOE rises (with the possibility that it may work out cheaper if rates went much higher).

It's all ifs and buts though and depends on your circumstances and how much of a gamble you can afford to take.