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Deals keep changing - help!
mandypeps
Posts: 1 Newbie
Please be kind to me, it's my first foray into the world of internet forums and it's 2am...
Buying with my partner: 370K flat in London; 65% LTV ; First time buyers.
Have been using an IFA for pensions, ISAs etc who seems smart, non-pushy and fairly on it. We both work in a job that has no easy phone or internet access 9-5 so thought an IFA could help with it all.
Decided to focus on 2 yr fixed for: lowest fixed interest rates; most flexible refinancing later on; and because trackers are floating so much higher than the BOE rate at the mo. No use offsetting yet - liquidating savings and assets for deposit/furniture etc.
Anyway: looked at loads the IFA sent us, and also a few direct-only ones (PO, FD, HSBC, ING) and then decided on Woolwich = 2.89% 2 yrs fixed plus £1999 fee, which worked out marginally cheaper than higher rate plus £999 fee and easily best rate on the market. Our IFA applied last week, only to be told today that interest rate was now 3.14% on a minimum 250K loan (we applied for 240K) with same high fee OR 3.49% on smaller loan with £999 fee.
Damn, I knew we should have got our deal done before the election! IFA says the credit check is done, but I do not think he has actually applied for the funds yet and I have asked him to pause for thought.
Problem is this: these new rates are not competitive compared to all these other direct-only ones quoted online, which offer about 3.0 - 3.1% and fees about £1000 or so. BUT this is based on my online research, which may well be out of date shortly, as the Woolwich site is still quoting the old rates from last week.
1. Is it extremely rude to say to my IFA that it is back to the drawing board, and that although we'd love him to get his procurement fee, it may not be financially worthwhile now?
2. Are all the providers going to be changing their rates following the BOE announcement on Monday (even though base rate stayed the same)? Am I therefore just looking at out of date rates??
3. Has anyone got any feedback on advantages/disadvantages of the Post Office, First Direct, HSBC or ING direct? Their key facts summaries look fairly innocuous to me, but I have heard rumour that the Bank of Ireland that underwites PO is dodgy given Ireland's deficit status, and that FD have lots of hidden charges etc etc.
Am I entering shark-infested waters if I go it alone?
Any advice appreciated!
Buying with my partner: 370K flat in London; 65% LTV ; First time buyers.
Have been using an IFA for pensions, ISAs etc who seems smart, non-pushy and fairly on it. We both work in a job that has no easy phone or internet access 9-5 so thought an IFA could help with it all.
Decided to focus on 2 yr fixed for: lowest fixed interest rates; most flexible refinancing later on; and because trackers are floating so much higher than the BOE rate at the mo. No use offsetting yet - liquidating savings and assets for deposit/furniture etc.
Anyway: looked at loads the IFA sent us, and also a few direct-only ones (PO, FD, HSBC, ING) and then decided on Woolwich = 2.89% 2 yrs fixed plus £1999 fee, which worked out marginally cheaper than higher rate plus £999 fee and easily best rate on the market. Our IFA applied last week, only to be told today that interest rate was now 3.14% on a minimum 250K loan (we applied for 240K) with same high fee OR 3.49% on smaller loan with £999 fee.
Damn, I knew we should have got our deal done before the election! IFA says the credit check is done, but I do not think he has actually applied for the funds yet and I have asked him to pause for thought.
Problem is this: these new rates are not competitive compared to all these other direct-only ones quoted online, which offer about 3.0 - 3.1% and fees about £1000 or so. BUT this is based on my online research, which may well be out of date shortly, as the Woolwich site is still quoting the old rates from last week.
1. Is it extremely rude to say to my IFA that it is back to the drawing board, and that although we'd love him to get his procurement fee, it may not be financially worthwhile now?
2. Are all the providers going to be changing their rates following the BOE announcement on Monday (even though base rate stayed the same)? Am I therefore just looking at out of date rates??
3. Has anyone got any feedback on advantages/disadvantages of the Post Office, First Direct, HSBC or ING direct? Their key facts summaries look fairly innocuous to me, but I have heard rumour that the Bank of Ireland that underwites PO is dodgy given Ireland's deficit status, and that FD have lots of hidden charges etc etc.
Am I entering shark-infested waters if I go it alone?
Any advice appreciated!
0
Comments
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The problem with 2 year fixes is you don't protect yourself much at all from rate rise.
With Barclays deals fees tend to be on the high side but for big loans this is less of an issue if there is a better rate.
After these barclays rate adjustments(12th) on the 2 year fixes
http://www.bank.barclays.co.uk/Mortgage/Ourmortgagesrates/P1242562266844
FD seem to offer better 2y fix deals. 3.09% with £499 fee
http://www1.firstdirect.com/1/2/mortgages/our-latest-mortgage-offers
Barclays still have the better follow on rate which is important if a remortgage becomes an issue in 2 years.0
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