Need another £15k, how does this offer look?

longwalks1

I'm currently 2 1/2 years into a fixed 4.99% offset mortgage with First Direct. I have 17 years and 3 months left in total (basedon a 25 yr mortgage).

Property value: £180,000
Current mtg owed: £110,300

I've asked to borrow £15 for various things, and this is the offer:

Amount: £15,000
Time: 17 years + 3 months
Booking fee: £99
Valuation fee: £173
2 yrs fixed @ 3.59% (this should tie in with end of my existing mortgage, then I can combine the 2)

How does the above offer look in todays climate?

If I've missed anything, please feel free to ask
Thanks in advance everyone

GuidoT

Anything < 4% is to my mind good.

Could you not take out a larger loan on the 3.59% deal and pay off your 4.99% mortgage.

Thrugelmir

GuidoT wrote: »

Anything < 4% is to my mind good.

Could you not take out a larger loan on the 3.59% deal and pay off your 4.99% mortgage.

ERC to pay possibly.

longwalks1

Hmmm good point, never thought of that

my 4.99%is actually a fixed offset, so not sure how it'd work if i borrowed more on the 3.59%? (both are with First Direct)

would FD lend me money to pay of a debt with themselves?

Thrugelmir

britishboy wrote: »

Hmmm good point, never thought of that

my 4.99%is actually a fixed offset, so not sure how it'd work if i borrowed more on the 3.59%? (both are with First Direct)

would FD lend me money to pay of a debt with themselves?

Offset but no savings?

Then your paying for a facility your not using.

Let_Us_See

Also, my immediate thought! Why are you paying such a high offset interest rate when you have no savings to offset? Defeats the whole purpose of an offset scheme.

GuidoT

britishboy wrote: »

Hmmm good point, never thought of that

my 4.99%is actually a fixed offset, so not sure how it'd work if i borrowed more on the 3.59%? (both are with First Direct)

would FD lend me money to pay of a debt with themselves?

Of course it is up to you what you tell them, I am not suggesting you lie though.

GuidoT

Thrugelmir wrote: »

ERC to pay possibly.

Do not see how an ERC would be that relevant with an offset mortgage.

In any event, I do not think we are in a situation where we are paying off a considerable sum.

InMyDreams

Thrugelmir wrote: »

Offset but no savings?

Then your paying for a facility your not using.

Not necessarily. Paying anything, that is.
I also took out a 5 year fixed 4.99% offset with FD less than 3 years ago (so possibly in similar position to OP). At the time I was looking, I was not bothered about the offset facility, but it was overall the best 5 year fix (which was what I also wanted) at the time. The offset bit was incidental. (Now you can get better rates if you don't offset, but that wasn't the case back then.)

longwalks1

cheers people

I have £30k in savings thats used to offset approx 50% of the time (the other half its in shares - then back into savings once a profit made)

longwalks1

Thrugelmir wrote: »

ERC to pay possibly.

Asked them when i phoned about the additional lending, and a £2k fee to get out early, i would ideally like to find the longest term possible fixed rate (or offset), and pay the £2k ERC, then fix it for X amount of years