New market leading 5yr fix?

Daniel_gecko

http://www.accordmortgages.com/products/mortgage-product-range.html

5yr fix
3.64% £1,900 fee
or
3.84% £400 fee
(or nationwide 4.14% £400 fee)

(Mortgage size is 120k)


Certainly beats the 4.14% with £400 fee I was going to apply for with Nationwide...
Should I continue with the nationwide one? (Their base rate is 3.99% compared to Accord's 5.99%). I can always pay the application fee again at Nationwide to switch to a better product if they lower their rates.

Thoughts?

dimbo61

This all depends on the size of the mortgage you are looking at !
If its £500K then the cheapest rate with the higher fee might work out cheaper over 5 years.

Daniel_gecko

Sorry, I don't mean to keep asking. I've been here before but markets keep changing.

Accord 3.84% 400 fee Base rate 5.99%
Nationwide 4.14% 400 fee Base rate 3.99%

Both are 5yr fixes.. the mortgage amount is 120k.

Nationwide has branches and a lower base rate, which are both good things. I can also pay another application fee (£99) to switch to a new mortgage product before completion if Nationwide decide to compete with Accord. But the Accord deal appears to save me 1500-2000 over 5 years in terms of money paid + remaining debt.

Daniel_gecko

Is the bank's base rate anything to worry about?
(accord's being 6% nationwide's being 4%)

Because at the end of the fix I can just remortgage asap, right? Even if i want to move house soon after, I just remortgage and make sure it's portable or no erc?

lkmc01

Just to add my bit.

We (1st time buyers) took out the 4.89% 5 year fix mortgage prduct with nationwide with 75% LTV on a 85k house (mortgage therefore 63750) with product fee 400 and arrangement fee 99 a couple of months back.

Monthly mortgage cost would be 368.60. We are due to attend solicitors tomorrow to sign for house. Last couple of weeks I noticed the 4.14% 5 year 75% LTV so have switched costing me £99. It does however save me about £1500 over the 5 years so worth it.

New mortgage is £341.44, only £6 a month above their 3.99% base rate. We have household annual income of £22,500 pre tax (including tax credits and child benefit £2500) with a 5 year old son. We are currently paying 500 a month rent and paid 375 rent back in 2005 for a one bed flat.

We will also be saving £25 a month in council tax and £15 a month on water bill. Looking forward to some disposable income for once. Oh, and the deposit is my student loan (currently charged at 1.5%)

Daniel_gecko

Thanks lkmc01.
How was the switching process? Quick and easy to do?

I am thinking about going for the Nationwide one because I like having a branch & the low base rate reassures me, but I expect Nationwide will reduce their rates to compete with YBS/Accord shortly - they seem to be having a war, so I want to be able to switch to their new rates.

lkmc01

To switch I rang the mortgage advisor I have been dealing with directly. I explained the situation and he checked the new product and gave me a new monthly figure. I paid my £99 over the phone and he gave me a reciet number. The product fee just transfered between products. The details for the new product we have been accepted for arrived about a week later to ourselves and our solicitors. No problems. :beer:
We were switching within the same bank though. My partner wouldn't go with anyone who doesn't have a branch and we were not accepted with YBS.

Daniel_gecko

Cool, I was worried I may have to pay for a 2nd valuation.

That 0.3% lower rate with Accord looks tempting, but I bet Nationwide will drop rates to compete soon.

lkmc01

4.14% with 400 + 99 I think is competitve. My partner wouldn't go with anyone who doesn't have a branch and we were not accepted with YBS.

Daniel_gecko

Not compared to 3.84% with 400 + 99 it isn't hehe

However my partner has the same thoughts, she would prefer a branch. Not sure if that's worth £2,000 though!

lkmc01

Daniel_gecko wrote: »

Not compared to 3.84% with 400 + 99 it isn't hehe

However my partner has the same thoughts, she would prefer a branch. Not sure if that's worth £2,000 though!

Thats what I meant with partners perferences taken into account.

For us to be reducing our rent / mortgage by 32% soon I cant wait!!