Fixed deal ending soon and looking for new fixed rate deal

JWD

Hi,
our current fixed rate 5 year deal of 4.5% with Newcastle BS is ending in Feb, so need to get skates on so don't have to pay their variable rate 5.99%. Have another 10 years to go and mortgage is about a third of the value of the house.

Have started to look around. Is anyone else in same position and found any really good deals? Probably looking for another 5 year fix.

NouveauRiche

Have you already spoken to your current lender?

My deal is about to end. I contacted my lender (Cheltenham & Gloucester) and they have given me a fantastic deal.

whatyadoinsucka

hsbc £50k mortgage on £150k house 10 years with
5 year fix is 3.99 plus £99 booking fee

newcastle BS seems extortinate at 5.5% above base

JWD

Thanks

The best for a 5 year fix so far seems to be First Direct at 3.89%. Newcastle BS is 3.99% for the same fix. Will carry on looking. Am tempted by the lower rates of the trackers but bit concerned about the base rate going up.

Gorgeous_George

I'd take the option of 3.99% with your existing lender even though the SVR is very high.

If your (remaining) mortgage was as much as £100K (and I guess it is less that that), the FD deal would only save you £425 over 10 years [1]. The hassle and cost (legal fees, arrangement fees and a survey) would outweigh the potential saving IMHO.


Good luck.

GG

[1]. I calculate that you need to have transfer costs of £347 to break even* (due to the cost of borrowing the costs over 10 years). Of course, this assumes that the SVRs from Necastle BS and FD are similar after 5 years (I used 5% in my calculation).

* £100K over ten years at 3.99%/3.89% for 60 months and 5.0% thereafter.

cpdc1030

Gorgeous_George wrote: »

I'd take the option of 3.99% with your existing lender even though the SVR is very high.

If your (remaining) mortgage was as much as £100K (and I guess it is less that that), the FD deal would only save you £425 over 10 years [1]. The hassle and cost (legal fees, arrangement fees and a survey) would outweigh the potential saving IMHO.

thereafter.

First Direct doesn't charge legal or valuation fees for remortgages. Or at least they aren't for me Hard to go wrong with 3.89% for five years.

Gorgeous_George

cpdc1030 wrote: »

First Direct doesn't charge legal or valuation fees for remortgages. Or at least they aren't for me Hard to go wrong with 3.89% for five years.

In that case, I'd switch to fd citing Newcastle BS's ridiculous SVR as the reason. The benefit of 0.1% remains marginal but at least you won't have to worry about Newcastle BS's SVR in 5 years' time.

I bank with fd and find them top class.

GG

JWD

Thank you GG and cpd. Think First Direct it is. But am being drawn to FD 2 year tracker with 2.19%. Security vs lower payments. My head says security, my wallet says lower payments.

silverfoxuk

Reading this thread with interest...... we're currently sitting on Nationwide's nice BMR at 2.5%, £100K mortgage on a £250k property. Came off a 5 year Nationwide 5.29% fix last May.

Like you, my head is saying fix again for another 5 years and the First Direct 3.89% is very tempting. Mind you, so is sitting on 2.5%.

The 'economics' is very hard to read. Inflation is 'high', but then in 2011 the 'cuts' in public spending is supposed to hit, and the economy aint 'soaring' as such, so it's really unclear what BoE might plan to do.

I might keep the FD mortgage application warm ready to pounce should BoE increase base rate anytime soon. (I suspect that when rates do rise, a gazillion others will also be trying to get a fixed rate mortgage at the same time!)