Best Fixed Rate Deal for Remortgaging??

TEDDYRUKSPIN

As above from all. My theory is that usually any borrowing under £100k and paying a so called booking fee and arrangement does not warrant this. It does not seem to make a massive difference monthly and your better paying nothing and just overpaying.

With the increasing and ridiculous amount of booking fee some lenders are charging, a simple calculation can tell you that it is not worth it. It only ranges from a saving of £5-£15 a month.

Neither do I like brokers as I believe a charge for a so called advice service is not warranted. Think about it. You end up deciding what you want anyway when you walk in. The person just narrows down you requirements in a non-advice basis and then charges you for it or gains a massive commission from the lender.

This is my opinion. Search around. ING is cheap at the moment but does not allow overpayments. Read the small print. Nationwide are not charge a total of £900 for a cheap fixed rate. So be smart. This is why martin made this forum!!!

MortgageMamma

TEDDYRUKSPIN wrote:

As above from all. My theory is that usually any borrowing under £100k and paying a so called booking fee and arrangement does not warrant this. It does not seem to make a massive difference monthly and your better paying nothing and just overpaying.

With the increasing and ridiculous amount of booking fee some lenders are charging, a simple calculation can tell you that it is not worth it. It only ranges from a saving of £5-£15 a month.

Neither do I like brokers as I believe a charge for a so called advice service is not warranted.

Not all brokers charge fees. Not everybody is capable of arranging their own mortgage so that they get the best deal. As members of the public, you do not have the priviledge of in depth knowledge of a lenders criteria and underwriting procedures as we do. Brokers in general add value when used by those who really need help.

Think about it. You end up deciding what you want anyway when you walk in.

And who gives the client the information and details to decide? who weighs up the pro's and con's for a client?

The person just narrows down you requirements in a non-advice basis and then charges you for it or gains a massive commission from the lender.

I think you are getting confused here. A broker will ADVISE a client what is best to do, so how can that be on a non advice basis? and a massive commision? are you for real? I dont think 0.35% of a 100k mortgage for 8-10 hours work is a massive commission. As brokers we don't pocket all that, a lot of it goes on overheads.

Teddyrukspin, whilst you are perfectly entitled to express your views and dislike of brokers on the site, I suggest you educate yourself further about the role of a broker and the value they add. To me, you sound like someone who's never even used a broker, and you have just decided to broker bash with no good reason.

Nationwide are not charge a total of £900 for a cheap fixed rate. So be smart. This is why martin made this forum!!!

Has someone mentioned he should go to Nationwide?

MM

MortgageMamma

SmileyC wrote:

Hi.
I read Mortgagemammas recent post with great interest. We are in the throws of re-mortgaging at the moment. Original loan was for £100K. Our remortgage will be for £88K, since we able to pay off a chunk before we remortgage.

This time, we chose a fees free 2year fixed rate with C&G. Rate is 5.25%. We saw an ind. fin advisor and this seemed a good option, especially since interest rates just went up and will probably rise again next month, according to the news.

We decided on fixed since I have stopped working to bring up our baby and we anticipate a 2nd child in 1-2 years-hence I will not be earning for a number of years and so fixed rates would give us the stability we need. But I read your comment about the interest being "front loaded" on fixed rate mortgages. I am wondering a) whether the capital we will pay off in the 1st two years is a "reasonable" amount and also what the alternative options are? Given that we are on one wage, we need security.

The keyfacts says that on an £88K mortgage, at the end of year 2, we will have paid off £5250 of debt and £8980 interest. The remaining debt will be £82749. We are intending overpaying by £100 per month and we have checked that this comes off the capital balance. Though I'm not too sure what impact this will have on the debt after 2years.

Advice from anyone who knows whats what would be welcome- we are due to post the C&G documents back tomorrow, accepting the loan. Am beginning to wonder whether we could get a better deal.....

You may be better looking at a fee's free remortgage or one with a VERY low arrangement fee to get some value out of this. As brokers unfortunately we do not have any influence over the arrangement fee's lenders charge, but as a general consensus most of us would like to see the reduced. C & G are a good lender, but there may be better for you than this product. Perhaps you should take a second opinion.

1jim

Can anyone tell me what the best rate would be for a 5year fixed rate mortgage, remortgage value around £80k with house value around £160k both of us have good credit ratings
thanks
Jim

Rick62

This time, we chose a fees free 2year fixed rate with C&G. Rate is 5.25%. We saw an ind. fin advisor and this seemed a good option,

Second opinion - I think this C&G deal (with no product fee) generally offers great value for smaller mortgages (for larger mortgages they have lower rates with a fee, also good value right now). I would go ahead and take it.

Nationwide rates are similar, until tomorrow, but offer less flexibility and they must be swamped today!

grade15

1jim..i think leeds building society do a great 5 yr fixed..
ending soon!!:dance:

Forreal

Leeds tie you into their home insurance for the length of the 5yr rate!

1jim

Thats what stopped me looking further into the leeds deal as I dont want to be overpaying on the insurance....does anyone know how competative they are for insurance?

Forreal

I managed to secure 5.08% for C&G for 5 yr fixed although the fee is hefty £999, there are no slocitor or valuation fees - is this a good deal?

angelfire

so on a 104k mortgage, would WE be better off going for a low fixed rate of 4.98, + £799 fee (nationwide) fixed for two years, or looking for something with no fee and a higher rate? We already have an AIP from Nationawide before they put up their rates tomorrow....