Is 4.99% fixed for term - self build mortgage a good deal

lynnnie123

Hi All

I have been offered 4.99% fixed for the term of the mortgage -14 years by Dudley BS for a self build/renovation mortgage of £110k. What do you think, I am thinking that if rates do start to rise again I could be ok with this, ovdrpayments allowed etc., I am really new to this as any advice is welcomed.
Thanks

opinions4u

I think it's a cracking rate ... assuming by "term" you mean longer than 5-10 years.

One thing to check carefully: Is there are completion date on the product? If so, can you meet this on a self-build mortgage?

lynnnie123

Hi Thanks for the reply.
Yes, ive read through and spoken to the advisor and its for the full term of the mortgage which is 14 years.
I am not sure what you mean by completion date, sorry can you explain. Thank you

opinions4u

I am not sure what you mean by completion date

Some lenders will offer a mortgage product on condition that the funds are released to you before a certain date, typically within the next 6 months.

If you are building your own property, they may not be prepared to release those funds until the property has reached a certain stage of development, which could easily be after any contractual mortgage completion date.

Additionally, I can't see any reference to the 4.99% fixed rate on their web site. This could be because it's a product only available via brokers or it could be that there has been some sort of misunderstanding and the 4.99% is merely the standard variable rate. Worth checking.

somethingcorporate

opinions4u wrote: »

Additionally, I can't see any reference to the 4.99% fixed rate on their web site. This could be because it's a product only available via brokers or it could be that there has been some sort of misunderstanding and the 4.99% is merely the standard variable rate. Worth checking.

Completely agree with this statement.

Their fixes appear particularly uncompetitive and the OP sounds like an amazing rate... (to me) it doesn't seem to add up and I think that you maybe confused with the existing SVR (or it's a big coincidence).

lynnnie123

Hi I will do another check with them. If it is the SVR and I am confused to say the least, what does that imply. We have had a quote from Buildstore for 5.75 also. But I am not sure if this is SVR. If it is I wouold be very grateful if you could explain. I approached Dudley BS myself after reading about them arranging self build loans so not through a broker. I am very new to all this and at the end of the day If I can afford the mortgage payments now and in the event of a % rise, pretty much this is all I am concerned with.
Many thanks to all those who have contributed so far and sorry if I appear very green !!