Newcastle Fixed rate 3.99 (5 years)

steviehud37

Hi

Got a mortgage with Nationwide

Variable 2.5%

83k Mortgage- over 25% LTV

Value Flat 115K

Just found out about Newcastle fixed rate for 5 years at 3.99%

Is it worth me swapping variable for Fixed rate?

I THINK THIS WILL HAPPEN
the mortgage stayed the same 0.5% (2.5%) until Jan 2012 and then goes up 1% and goes up another .5% Dec2012 will i be better for me to fix now or go variable ?

i need to weigh up the figures but unsure how to work out the costs regarding my prediction

Can somebody help please?

hcb42

what is the fee?

At a low SVR like that i would be tempted not to lock in, but it depends on your attitude to risk and your ability to pay if they do exceed 3.99%

steviehud37

Fees £195 plus completion fees £600 =£895

dimbo61

If the BOE base rate stays the same for another 12 months I will be dancing in the streets.
Wishfull thinking
The choice of staying on the BMR at 2.5% or taking a long term fix is very much your choice and your plans! Are you staying in the flat for the next 5 years? income,job security, kids! ETC

originalmiscellany

steviehud37 wrote: »

Hi

Got a mortgage with Nationwide

Variable 2.5%

83k Mortgage- over 25% LTV

Value Flat 115K

Just found out about Newcastle fixed rate for 5 years at 3.99%

Is it worth me swapping variable for Fixed rate?

I THINK THIS WILL HAPPEN
the mortgage stayed the same 0.5% (2.5%) until Jan 2012 and then goes up 1% and goes up another .5% Dec2012 will i be better for me to fix now or go variable ?

i need to weigh up the figures but unsure how to work out the costs regarding my prediction

Can somebody help please?

I would be over the moon too if interest rates did as you predicted! I'd be dancing on the ceiling and in the streets! No-one knows what will happen; I think the stability of your 5 year fix could be just the security you need

steviehud37

no kids -and just wana stay in my appartment for more then 5 years

due to Vat rise and costs in general rising and dont think the rate will rise for at least 6-9 months

dimbo61

the minute the BOE puts up the base rate even 0.5% which in effect doubles the interest rate then guess what the banks will pull the current 4% five year fixed rate deals.your decision do you need the security of a long term fix at 4%

silverfoxuk

steviehud37 wrote: »

Fees £195 plus completion fees £600 =£895

If you're looking at 5yr fixes at that LTV also check out First Direct 3.89% @ £99 fee. Need to move your current account to FD though if not already.

Moneyfacts worth keeping an eye on http://moneyfacts.co.uk/compare/mortgages/fixed-5-year/

museumworker

You need a max 65% LTV for the First Direct mortgage. OP has a higher LTV than this so would be ineligible.