Current Fixed Rates...

kossohead

Hi

We are buying a property at £230k and have put down a £100k deposit, therefore need a mortgage of £130k.

Our broker suggests to go for a 2 year fixed deal.

He said the BEST FIXED RATE to go for is with Natwest for 2 years at 2.75% with a lenders fee of £695.

Is this deal ok, just wanted to know as some brokers obviously get more commission if they sell a particular mortgage.

Many Thanks

Leon_W

" some brokers obviously get more commission if they sell a particular mortgage"

Actually they don't.

Mainstream lenders commission to a broker, pretty much across the board is 0.3% - 0.35%, and Natwest is towards the lower end so no bias there.

Some lenders do not pay any fee like HSBC, so unless you have agreed a fee agreement with the broker then he will not consider these mortgages in his recommendation. He is, after all, not going to spend time advising you, helping out, arranging things and remain liable for the advise for nothing.

Regards

monsavnil123

Sounds pretty good in my experience(20years of mortgaging and remortgaging). But get more advice and shop around.

dimbo61

That,s a very good fix but its only for 2 years!
Why not fix for longer say 5 years! couple of deals at less than 4%

kossohead

dimbo61 wrote: »

That,s a very good fix but its only for 2 years!
Why not fix for longer say 5 years! couple of deals at less than 4%

Yes, thats what I thought, but he mentioned as its a new house, who knows you might want to move again in a few years if you dont like it there and therefore no penalty to pay. Also, reckons interest rates wont be more than 4% in two years time..

opinions4u

He also gets another commission in two years' time (if you use him again) rather than having to wait for five years if he recommends the shorter deal.

getmore4less

kossohead wrote: »

Yes, thats what I thought, but he mentioned as its a new house, who knows you might want to move again in a few years if you dont like it there and therefore no penalty to pay. Also, reckons interest rates wont be more than 4% in two years time..

Do you need to fix?

If he is confident rates are staying low then a lower cost tracker might be better and overpay to bring the debt down.

dimbo61

Just dont expect the new property to increase over the next 2 years ( are there other properties to sell?) and overpay if you can.
Now if you have a mortgage over 25 years are you going to remortgage every 2 years ( 12 times!!!) or think long term !
If you plan on staying at least 5 years then take a 5 year fix and overpay
You must have an idea ( good schools,near work,good transport links ETC)

kossohead

I know, I am in a bit of a dilema now:undecided

Natwest also do a fixed 5 year deal at 3.99% with No Fee compared to the 2.75% fixed for 2 years with a fee of £699..

The diff between the two offers are £96 extra per month

Only thing is that on Friday last week our Independant Mortgage adviser sent off the application...:-)

Should I call him first thing on Monday and get him to change the mortgage? Its just that it may prevent us from moving into the property before xmas.

Gorgeous_George

If YOU think you may need to move within a few years, buy the house that you may need to move to. Only ever buy a house that you intend to keep for 10+ years.

Remember, he is a mortgage adviser and has no idea where interest rates will go next.

GG

slummymummyof3

HSBC were doing 3.94% for £99 arrangement fee, fixed for 5 years - longer security????