Good or poor deal?

moneybags_3

Do any of you mortgage whizz kids know if this is a good or bad deal? I would like a fixed rate as I prefer to know what I will have to pay out over the next 5 or so years. I'm afraid of more rises in rates. I am at present on a variable rate with a 'big lender'. They have offered me a choice of 3 fixed deals - 2 years, arrangement costs 199 pounds, 5 and 10 years, no arrangement costs. The rates for the 2 year deal are 6.25% and for the 5 year deal, 6.35%. Deals are portable and with the 5 year deal penalties are: 5% year 1, 4% year 2, 3% year 3 and so on. 10% can be paid off loan each year without any penalties. I have looked at other lenders but there are so many to get my head around and a lot of them charge various fees. :-/

luckyfool

The short answer is that it's a pretty poor deal. Like most major lenders Halifax/Abbey etc they don't offer good deals to existing customers. The rates you quote sound alot like Halifax Existing customer deals.

Halifax would offer new customers remortgaging a 2 year deal @ 5.29% or 5.39% depending on ltv with £499 and £399 fees.

The best deal for you will depend alot on how much you have outstanding on your mortgage. Also on the Loan to Value. A good 2 year fixed rate would be below 5.5%, 5 year fixed rates are around 5.75%.

Its certainly worth your while shopping around or getting a free mortgage broker to do it for you.

cheers

Joe

moneybags_3

Thanks Joe. You are right it is Halifax. It might be too late for me now, I was on the phone to them about their 5 year deal and they are sending me out the paperwork. If I can decline it, I will shop around for a better deal.

lakelady

What do those in the know think are the best deals now?

I am looking for a repayment mortgage of £67000-ish, on a house worth about £275000, over 15 years, ideally without fees.

Any brokers reading who can make recommendations? I would be happy for you to sort it out for me and get any commission available.

DiggingOut

Thanks Joe.  You are right it is Halifax.  It might be too late for me now, I was on the phone to them about their 5 year deal and they are sending me out the paperwork.  If I can decline it, I will shop around for a better deal.

If you haven't signed paperwork, I'm sure you can back out.

DiggingOut

What do those in the know think are the best deals now?

I am looking for a repayment mortgage of £67000-ish, on a house worth about £275000, over 15 years, ideally without fees.  

Any brokers reading who can make recommendations?  I would be happy for you to sort it out for me and get any commission available.

Brokers can't really make specific recommendations on this board. There are several fees-free brokers who post here -- Payless, MortgageMan, MortgageXclusive. Their contact details are on their profiles, why don't you contact one or more of them directly for recommendations?