ING Direct

whiskymincher

Anyone used these guys for mortgage. Got a reasonable fixed 2 year at 4.95% on offer. Any feedback welcome.

meanmachine_2

Reasonable is the word.

Not exactly earth shattering, is it? Why bother?

whiskymincher

If there is anything out there earth shattering with low set up fees please advise.

HelpWhereIcan

One major advantage of the ING direct offering is the fact that the rate that the fixed rate reverts to is currently 5.14%. As a standard variable rate, it is exceptional and means that this deal could offer very good value for the long term. There are not many deals out there are fixed at 4.95% with the rest of the term on Bank of England Base rate plus 0.39%.

The thing that people would need to be careful of is the fact that they say that their standard variable rate will be less than 0.9% above Bank of England wihich means that it's equivalent could rise to 5.65% which still makes it a competitive deal for the long term.

I would argue that this, combined with the relatively low level of fees on it; makes this deal potentially very good value for the long term and would mean that the chances of being forced into a remortgage to get a reasonable rate in the future are lower for someone on this deal than for someone on a deal with another lender that may appear to be slightly better over 2 years.

Just my thoughts

mbailey

whiskymincher wrote:

If there is anything out there earth shattering with low set up fees please advise.

Yorkshire BS have a 4.74% for 2 yrs with £395 fees (if complete by Xmas, other wise £595).

Most of the lower % fixed rates seem to have fees based on % of loan which can work out very expensive. (A 1% fee is equivalent to 0.5% on the interest rate on a 2 yr fixed. It is actually worse than that as if you add it to the loan you are paying interest on it again.)

meanmachine_2

HelpWhereIcan wrote:

The thing that people would need to be careful of is the fact that they say that their standard variable rate will be less than 0.9% above Bank of England wihich means that it's equivalent could rise to 5.65% which still makes it a competitive deal for the long term.

That's debatable. If anything it'll encourage you to lapse onto the SVR and do nothing about it.

If you have a tiny mortgage and find it difficult to get a good offer elsewhere then it might make sense, but for new borrowers that's a long way away. We could all be dead by then.

Yes, 4.74% seems to be the lowest, without paying a stupidly high arrangement fee.