10 Year Fixed Rate Mortgage at 3.99%

Pimperne1

Wow, we love you Chelsea:

http://www.thechelsea.co.uk/mortgages/products/10yr-fixed-70ltv-3060.html

70% LTV but this is a fantastic deal with a relatively small arrangement fee.

JonnyBravo

Flip, that's good.
Hefty early redemption fees for the first few years but on a 10yr fix at that rate I'd say fair enough.

Pimperne1

JonnyBravo wrote: »

Flip, that's good.
Hefty early redemption fees for the first few years but on a 10yr fix at that rate I'd say fair enough.

I would imagine its portable so ERPs tend not to happen too much (to me anyway).

staffie1

Crikey! What does that say about where BoE interest rates are likely to be longer term...?!

misskool

only 10% overpayments allowed per year on the total mortgage loan though.

Graham_Devon

Pimperne1 wrote: »

Wow, we love you Chelsea:

http://www.thechelsea.co.uk/mortgages/products/10yr-fixed-70ltv-3060.html

70% LTV but this is a fantastic deal with a relatively small arrangement fee.

But be cautious of the large repayment fee's!

In 5 years time, you'd still be looking at paying 6% of the loan as an exit fee (transfer or pay off). On 130k, thats rental for an entire year. (just using that as an example).

Pimperne1

Graham_Devon wrote: »

But be cautious of the large repayment fee's!

Already dealt with - just check out if its portable, if it is then just move it when you move. Lets be honest, if you've managed to get 30% equity in your property your not likely to be the kind of person whose daft enough to STR.

Graham_Devon

Pimperne1 wrote: »

Already dealt with - just check out if its portable, if it is then just move it when you move. Lets be honest, if you've managed to get 30% equity in your property your not likely to be the kind of person whose daft enough to STR.

Who's talking about STR'ing?

You have a one track mind.

What about moving? People do find that they need to move sometimes, y'know!

The mortgage is fine. Just stating you should check all the facts before highlighting only the headline figure. It could be a hefty fee on top of all other moving fee's to move house.

Pimperne1

Graham_Devon wrote: »

Who's talking about STR'ing?

You have a one track mind.

What about moving? People do find that they need to move sometimes, y'know!

The mortgage is fine. Just stating you should check all the facts before highlighting only the headline figure. It could be a hefty fee on top of all other moving fee's to move house.

What did you mean by "large repayment fees"? Did you mean large redemption penalty if you pay it off before the 10 year point?

Graham_Devon

Pimperne1 wrote: »

What did you mean by "large repayment fees"? Did you mean large redemption penalty if you pay it off before the 10 year point?

Read the website:

7% to 30/11/14
6% to 30/11/16
4% to 30/11/18
2% to 30/11/20
1% to 30/11/21
If the product is repaid in full or in part, or transferred (in full or in part), an early repayment charge is payable as described above.

Pimperne1

Graham_Devon wrote: »

Read the website:

Okay, already dealt with. The mortgage is portable so it you don't STR then you will most likely need another mortgage. Pay the ERP and get it refunded if you take out another mortgage of the same amount within six months:

http://www.thechelsea.co.uk/mortgages/mortgage-guides/mortgage-process/moving-home.html

If you do STR then you pay it (but if you STR just to jump back into the market after the crash then you deserve to pay an ERP).

I would only suggest these type of products for people who have a good handle on what they expect to be doing for the next 10 years, for example if you plan a career break etc then you would be foolish not to think of what effect trying to apply for another mortgage during that break would have (ie you probably would fail the affordability test).