ING flexible mortgage

the_main_man

Can anyone see any pitfalls in this mortgage, as I can't.

Their rate is currently 5.14%, and they guarantee it will never go more than 0.9% above the BoE base rate. There are No fees for applying or remortgaging and no fees to leave it.

Surely this means anyone on a higher rate, who can remortgage to this lowewr rate cannot lose. If the BoE rate goes too high, you can simply walk away at no cost!

My mortgage is currently split three ways, some on NWB variable 7.14%, some on NWB fixed 6.89% expiring Mar 07, some on 5.69% fixed 1 more year, but penalty to leave is minimal.

I am seriously considering this mortage because it is so easy to get in and out of.

Comments?

JasonLVC

Just switched to them and had your reservations too but having completed it is indeed a standard variable rate mortgage, not more 0.9% above bank base rate - it cost me nothing to get the mortgage, no fees for leaving, no valuation fees, can overpay, take payment holidays, etc.

They handled all of the paperwork with Egg (my previous lender) and was fairly painless. Getting through on the phone is a pretty long wait (20mins+) though.

These are a Dutch bank and if I recall when they hit the scene a few years ago had one of the best savings rates at the time and got a lot of business from it. More recently, their savings rates are now just good and on par with the others. This is a new move into mortgages and so I guess they're using the same marketing plan as the savings, coming in with a really low priced product to get £m's new customers. Sure the % will likely creep up but like most things they'll rely on you being to lazy to move it.

But while it lasts I thought it was a good buy becuase by the time you factor in the £700 product costs, admin fees, etc I wasn;t actually making that much of saving from Egg, but now I am -for now. Lloyds was doing a five year fixed for 5.14% but I'm at the stage where I don't want to fix when interest rates are at the 'top end' of the scale as they'll likely come down or stay the same - or else Lloyds wouldn't be hedging their bets.

I just wanted to reduce my monthly payments a little, I'm not too sensitive to bank rate interest increases so thought this would be a good place to keep it for a few years and see what products come up later in the year - all the while saving a few quid each month if I'd stuck with Egg (I was on 5.79% there).

DoshSaver

I am just in the process of transferring to them – I had the same reservations and wrote to them to ask a question about how the interest only part of my split between repayment & interest only would be dealt with as the “Interest” bit ran on longer as they don’t split years i.e. mine would last 7yrs 6 month with current lender. I could have freephoned them but preferred to write (freepost).
They phoned me and said “… that was not problem just get a online re-quote for 8 years (not 7 that I originally selected as they only work with whole years) and repay when the endowment matures as there is absolutely no fees it makes no difference…”
Now whilst this may mean slight increase in interest, after working it out its negligible; and I still clear at the 7 year 6 months point; and of course if I can afford it there are no penalties for repaying the capital in amounts of £1000 and over anyway.

Phew stress free or what!
It was really very simple and here is what I wrote at the bottom of my letter to them
rather than reword it I have copied and pasted it!

“By the way, we are extremely impressed by the stress free no hassle process you are implementing with mortgages. For too long UK Banks, Building Societies, Brokers etc. have manipulated and over complicated the process which leads to confusion, scams and unfair penalties. It is a breath of fresh air to be able to commit to a process and situation in the knowledge that it is straight forward, clear and fair without needing a Degree in Economics, Mathematics and/or Law to understand. WELL DONE and THANK YOU!!!”

meanmachine_2

I guess it's not too bad, but speaking as a saver who has seen the savings rate go in the wrong direction for the last year, I wouldn't trust ING as far as I could spit.

Don't be surprised if the rate hits the full +0.9% ceiling once they've sucked you in.

As others have stated, one for those who are prepared to keep a beady eye on things and move the moment ING start screwing you over.

zz4c

Does that mean there is a deliberate ommission in the advertised rate on their website of 5.14% when the current Bank of England rate is 5.25%? Or, as suggested are they holding their rate to catch new custom - and then increase it to 5.39%?
I've only done limited research but, the deal does sound attractive for a remortgager on 6.5% with the Halifax (who don't appear keen to offer me a competitive rate to remain with them). Guess, they are relying on apathy of borrowers like myself to remain with them.
Also, not sure what happens when you want a further advance from them ie. to pay for an extension - would they then make some charges ie. admin, valuation etc...
Thks.....

DoshSaver

zz4c wrote:

Does that mean there is a deliberate ommission in the advertised rate on their website of 5.14% when the current Bank of England rate is 5.25%? Or, as suggested are they holding their rate to catch new custom - and then increase it to 5.39%?
I've only done limited research but, the deal does sound attractive for a remortgager on 6.5% with the Halifax (who don't appear keen to offer me a competitive rate to remain with them). Guess, they are relying on apathy of borrowers like myself to remain with them.
Also, not sure what happens when you want a further advance from them ie. to pay for an extension - would they then make some charges ie. admin, valuation etc...
Thks.....

They are holding the rate (In their litrature they indicate it will go up on the 1st day of the following month - but I think they are still keeping it at 5.14%. However, it would still very competitive and is totally flexable (overpayments of £1000) as there are no other charges and can be left with out any penalities if they become uncompetitive. NOTE: your figures are wrong;;) if it does rise 5.25 + 0.9max becomes 6.15%