Mortgages--which one?

lilyann1

Just found First Direct do a 10 year offset fixed for 5.19%.It sounds good as 2 and 3 year fixed are around 5.29% or 5.39% at the moment.
We are taking out a very substantial mortgage when we move and wonder if this rate seems good?
I do worry about being tied in for 10 years though.
Any body else got any good rates recently?
I found A&L do a 4.69% fixed but the arrangement fee is £1k!!!!

kenshaz

This might help it is taken from the Martin's book The Money Diet
Get mortgage advice for free.As mortgage advice is only paid for when you complete,a broker simply telling you it's pick doesn't incur a fee.As best practice always get more than one opinion,speak to three or four brokers then complete via L&C.this way best advice and no fee.
London&Country 08009530304
www.charcolonline.co.uk 08007118191
Chase de Vere mortgages 08003585533
FPD Savills 0870 3585533 (personally(Kenshaz) I do not use 0870 numbers,they generate revenue for the company and the rate is usually higher than national rate)

London& Home Country is phone only,so it operates on a cut price basis,doesn't charge customers a fee,just takes commision.
Broker's make their money in two ways.They get 'procuration fees' from lenders when you takle out a mortgage;these average from 0.25% of the mortgage value for standard mortgages to 1% for those with credit problems.So on an £80,000 mortgage,this a substantial £200 to £800.Most also charge customers a fee on top:0.5% of the mortgage value is common,but it increases with complexity.The most you should ever pay is 1%. Use a mainstream broker.

kenshaz

www.charcolonline.co.uk
has search wizards and calculators,so you can browse without making a formal inquiry,I have used them and find them very good ,but remember they charge a fee and commission:money:but if you process the mortgage via its website even after one--on -one advice and there's no fee to pay

happyhunter

lilyann1 wrote:

Any body else got any good rates recently?
I found A&L do a 4.69% fixed but the arrangement fee is £1k!!!!

I find HSBC's 4.99% fixed for 2 years with £599 arrangement fees quite attractive. Considering HSBC don't have a 'release fee' whereas A&L will charge you £295 to get out. Also HSBC's early redemption fees descreases over time and no penalties for using getting your insurance cover elsewhere (again A&L will charge an admin fee if you take buildings insurance with someone else).

Joe_Bloggs

The amount to be borrowed is a vital factor. It helps to weigh up the value of the fees versus interest rate in a mortgage deal. This fee can get you a discounted period at a lower rate of interest. The amount of the loan and the current value of the property also influences rates that you can get. These are combined as a Loan to Value ratio (LTV).
It might be worth paying a high fee for a low rate. It all depends upon the relative size of the numbers.
There are often significant early repayment penalties for leaving long term deals early.
There is no guarantee that you will be able to buy a specific property. Paying non-returnable fees in advance may be a waste of money if the property chain breaks down.
J_B.

lilyann1

Thanks for those.I will look into charcolinline.
Also great point about the paying fees upfront and losing them,as its not guaranteed to buy a certain property.
This is exactly the situation I am in,as we had a mortgage agreed back in April at a really good low rate and opted to add the fee to the loan.
Unfortunately we have had a buyers buyer pull out of a chain then our vendor has now pulled out of 2 properties,so we are unable to get this mortgage as it has expired,even after me asking them to extend the drawdown time twice!!
So I am now on the lookout for a new mortagge but had not really thought about the loss of fees if we pay them upfront.

lilyann1

Just found the Woolwich mortgages site and they do some great deals.
4.98% fixed for 10 years,hefty early repyt fees tho',but after we finalise this move we are never moving again!!! Its a £595 booking fee but no valuation fees.
Or they do a lifetime tracker at 4.94% no fees involved.
Just have to think now do we want to fix the mortage in case rates are on the up and up!!!