Can anyone comment on this deal please

MikeA

I recently was give the following deal, although have not taken it yet, from a whole of market broker. I was told, as i need more than the usual 3-4 times my salary (£20,000 a year) that Northern rock would be my best bet and given no alternatives. The deal is for £89,000 fixed for 3 years at 5.69% with a £1,340 setup fee and an early repayment charge of £2,670 within the fixed period. As I felt I wasn't given a great deal of choice I wonder if anyone could comment? Thanks in advance.

Rick62

Someone like Abbey or possibly Alliance & Leicester might also be worth looking at. Depending exactly how much you need and how much deposit you have will affect which is the best deal you can get.

Pint_Sized_Princess

I'm just in the process of remortgaging and am going for a 2year fixed rate through A&L - I was on their website earlier and notice that they do a 3year yr one too and they have a mortgage calculator on their website which will tell you how much you can potentially borrow. I seemed to be able to borrow
over 4x my salary anyhow.

The rate is higher though - 5.84% for three years or 5.74% for two years. The early repayment fee within the fixed period is 3% I think.

But the good bit is that there are no upfront fees!! Well you have to pay the valuation - but you get it back within 10days of completion. Not sure of the sums, but if you dont like stumping up the cash upfront it may be a good deal for you.

I'm going through L&C mortgage brokers - they have been excellent in looking for the best deal for my needs and I completely recommend them!

Oh another thing....you might be able to lend more if you go over the usual 25yr mortgage period - I got mine out for 35 years when I moved house so that I could lend as much as possible (only 33 years to go!!). Anyway the A&L one gives you flexibility to do that.

Good luck!

MikeA

Thanks for the replies. I've about £185,000 as a deposit. I know the interest rate won't make a whole lot of difference on the relatively small mortgage but was just expecting a few more options from the broker rather than just being given the one. Will keep looking :-)

herbiesjp

MikeA wrote:

Thanks for the replies. I've about £185,000 as a deposit. I know the interest rate won't make a whole lot of difference on the relatively small mortgage but was just expecting a few more options from the broker rather than just being given the one. Will keep looking :-)

On that basis I would definitely look around.

You should have the pick of the market (don't know anything else about you), but based on the figures above, you should be able to find some other deals, and some with far lower fees that may work out to be more cost effective.

HTH

MikeA

I've now been onto London and Country and feel much more informed about whats available. Just need to decide now :-) Thanks again for the money saved in advance.