What to do.....?

SilverDub

This is my first post, just spent an hour or so reading through other posts and the advice for others seems really well informed.

I am currently with Northern Rock on an SVR 4.79% paying £200 per month over payments. Interest only was the right thing for us at the time however we want to get on a fixed repayment for the next mortgage. We are not interested in moving but would like to install a new kitchen we would be adding £10k to the bill.

House value £190k - borrow £128k LTV is approx 68% and 18yr 6mth term joint income £60kish we have no other borrowed debt. Northern Rock have offered me 5yr fixed repayment at 4.09% BR with a set up fee of £995 and £295 mortgage increase fee. This keeps the repayments within buidget. Currently paying £680p/mth, was paying £900p/mth before referring to SVR - this would see us at £821p/mth.

I think this is a good offer, I've been searching the net and haven't found a better one yet.

Doe's anyone suggest any better deals than this one? All suggestions will greatly appreciated.

Thanks in advance
Dub

Joe_Bloggs

Welcome to the forum.
I am completely unqualified to comment but I think you have a good deal with that fix. I have been tracking for a while. This month to month uncertainty may be too much for those who dread an interest rate escalation.

J_B.

originalmiscellany

Joe Bloggs, I agree with you. Looks like a good deal, I'd stick. If you can keep overpaying as well, then you will progress nicely into eating your mortgage up. But again as Joe says, it's just our opinions and not proper advice.

SilverDub

I was thinking the same myself, its such a mind field this re-mortgaging malarke.....who knows what will happen by 2016 anyway?

originalmiscellany

Not me. Could be 10% interest rates, could be back to 2% - who knows... Mortgages are a blooming tricky mine field aren't they?

Burridge60

SilverDub wrote: »

......... Northern Rock have offered me 5yr fixed repayment at 4.09% BR with a set up fee of £995 and £295 mortgage increase fee.

One of the chosen few if you read the now consolidated thread about Northern Rock.

Its pretty good compared to the average of five year foxed rates over the last 15 years or so. Best I can recall was 4.39% (at 90% LTV) might well have been NR around 9 or so years ago but was very short lived. Missed it myself as that was in March and my deal ended November.

NR have always had high fees and charge you for extra borrowing more. Maybe Woolwich might have a deal or HSBC both will charge you arrangement fees but not for extra borrowing. You would have to pay NR exit charge which is close to £300 I think.

Great news you have gone to repayment basis

SilverDub

I've looked at the following:

Nationwide - 4.69
Natwest - 3.95 with 50% deposit
HSBC - 4.29%
Halifax - nothing
Barclays, Lloyds, N&P, FurnessBS, Brittannia were all way off.

Our previous Interest only was topped up £200 p/nth on a standing order and at the time advised to use it as a high interest savings account - no chance that is chipping away at my capital and the only saving grace from an ill timed decision to tie in at 5.89%, it could have gone either way at the time so I missed out on the bargain trackers they must be over payment heaven.

Back to the NR offer, I should probably snap it up asap before it gets withdrawn, might even see if I can afford to reduce the term to 17yrs?

I'm going to read the NR sticky now and will let you know what we decide on.

Thanks
Dub