woolwich 10yrs fixed at 4.98% - is this good?

JoeyDoll

Hi

Currently looking for a new mortgage deal and not sure if this one is good or not and advice would be much appreciated. The fees for the woolwich 10 years fixed at 4.98% is £595 do you think this is negotiable?

Many thanks in advance...

lisyloo

Sounds like a pretty good deal if you want to fix for 10 years.

I don't think you stand a snowballs chance in hell of negotiating on the fees - sorry.

JoeyDoll

lisyloo wrote:

Sounds like a pretty good deal if you want to fix for 10 years.

I don't think you stand a snowballs chance in hell of negotiating on the fees - sorry.

Thanks for your quick reply - didn't think I would be able to negotiate the fees!!

Do you think a 10years fixed is a good idea - are they set to rise? Or do they generally stay around the 5% mark anyway?

Thanks in advance..

Robert_Sterling

Duplicated post removed.

Robert_Sterling

The rate is OK.
The charge for early redemption of part or all of the loan is rather high in my opinion.
So I prefer the Nationwide 5.18% ten year mortgage
But you can overpay £500 per month without penalty.
You might not want to do this at present but
you might want to at some time during the ten years.
The initial charge is £399 rather than £595.

This is not advice. It is just what I would do.

Ian_W

Prior to 19/9/01 interest rates had not been under 5% for over 30yrs - see
https://www.houseweb.co.uk/house/market/irfig.html
and
https://www.bankofengland.co.uk/statistics/rates/baserate.pdf
Although rates haven't been above 5% since then, and we're said to be in a low inflation/IR period, over 10 yrs I would personally think it very unlikely you'll be on a loser with IRs if you can fix <5%. Obviously only a personal opinion though - no guarantees.

Where you might be on a loser is if your personal circs change and you either have to pay ERP charges to get out of the deal or you're at the whim of one lender if you want to borrow more to upsize, extend or improve your property. 10yrs is a hell of a long time to try and foresee in terms of personal circs and housing needs. That's the real danger IMO of a long term fixed. Only you can decide if you're happy to take that risk.

BoL whatever you decide.

AndrewSmith

As far as the basic facts go, yes the rate is good for a 10 year product. If what you are asking is actually 'is this the right product for me?' then no one but you can answer that.

Look in detail at the exact terms and conditions attached and ascertain a 'true cost' comparison against some other deals available. Also think ong and hard before committing to a 10 year period. A lot could change in that time.

As for the fees, nice try but no chance. Their reply would be 'if you dont like the fees, go to another lender'.

tyllwyd

JoeyDoll wrote:

Do you think a 10years fixed is a good idea - are they set to rise? Or do they generally stay around the 5% mark anyway?

In the short term, most people seem to be expecting a couple of increases in the next six months. But I don't think anyone could say whether or not mortgages were likely to stay at around 5% over 10 years. Mortgage rates will be influenced by the Bank of England base rate - there is a history here
http://213.225.136.206/mfsd/iadb/Repo.asp?Travel=NIxIRx

I first took out a mortgage in 1993, so I remember how painful it was when our first three year deal expired. Things have been much more stable in the 200o's.

knuckledragger

JoeyDoll,
with the Woolwich 10 year fix, they give you cashback of £200 on completion so the fee becomes £395 really (and there's a free valuation).

JoeyDoll

Hi

A big Thanks to everyone who has replied you have all been really helpful.

I found this information on the website and other replies have mention it:-

'Ten-year fixed rate: Early repayment charge: 6% of the balance repaid will apply if the mortgage is repaid in whole, part of transferred to another scheme until 31 January 2017. However, you can overpay up to 5% per year during the fixed rate period without incurring an early repayment charge.'

Does this mean if I wanted to pay my mortgage off in full i'd be charged 6% of the balance? I can't really see this happening unless I have a winfall!!!

However, we will probably be moving house in the next 10years to a little more expensive property and maybe wanting to increase the term from 20years to 25 years - so would this mean we would be charged.

This is all very confusing for me and any further help would be appreciated,

Many thanks

Ohh nearly forgot Robert Sterling and Knuckledragger mentioned the fees were cheaper if they could post the link where they got the info I would really appreciate it as I can't seem to find it anywhere. Also does this apply to new customers as we are currently with the Woolwich for our mortgage anyway so it might not apply to use.

Thanks...

Rosie75

knuckledragger wrote:

JoeyDoll,
with the Woolwich 10 year fix, they give you cashback of £200 on completion so the fee becomes £395 really (and there's a free valuation).

Is this new? We're going with the 10 year fix (exchanging Friday) - didn't get a free valuation and won't be getting cashback