Should I fix for 2yrs or 5years? :)

dellboy102

Hi Guys

My current mortgage deal runs out end of this month so would appreciate some advise , current lender has offered:

2yr tracker: 2.49 above base, current rate would be 2.99, £799 fee, works out at £926 month with fee added

2yr fixed: 3.15, £799 fee, £935 a month with fee included

5yr fixed: 4.09, £990 month with fee included

Settlement figure is £121k, got 13years left, property value of £170k

Got my broker looking to see if theres any better deals but I reckon current lender is quite competitive.

Thanks!

liubeliu

At 71% LTV you should look at Britannia 5 year fixed at 3.39% with £999 fee

http://britannia.co.uk/_site/channels/mortgage/products/5yr-fixed.html

Same deal fee free if you open a Britannia current account

http://britannia.co.uk/_site/channels/mortgage/products/ca-exclusive-5yr-fixed.html

dellboy102

Ended up staying with current provider (natwest) who offered 4.09% for 5year fixed, still not sure whether I made right decision, I guess I have a week to change my mind though..

fflump

Out of interest why did you stay with Natwest when there are better deals elsewhere? Inertia?

natman

I agree........

I have just taken out a 5 year Britannia Mortgage fee free on at 3.59%.
I am curious as why you stayed with Natwest too.

n

dellboy102

I spoke to brokers and they said its currently the best deal, spoke to about 3, there was one slightly better rate but after the fees apparently wasnt worth it..

Brittania would be £22 cheaper per month, i'm not sure what other costs would be involved in switching, is it still worth it?

dellboy102

I've never switched mortgage before, does anyone have a list of what it costs to move mortgage?, e.g. if I switched to the britannia fees free option.

brit1234

Never do 2 year fixes they are just easy fee returns for the banks and the situation could be worse in 2 years time. If you want confidence in payments go for 5 or even 10 year fixes.

dellboy102

Natman, how did you find that one?

natman

Dellboy, ring up Britannia and ask about switching, here is the link again for the product -
http://www.britannia.co.uk/_site/channels/mortgage/products/5yr-fixed.html

it is fee free, you may have to pay for a valuation for your property so Britannia are happy with the loan to value etc.
Britannia's number is - 0800 0131140

Mine has just gone through no problems, no fees, standard valuation was included for me, I paid nothing for this mortgage.
am on 3.59% for 5 years, happy days.

A lot of brokers cant offer some mortgages such as HSBC I am not sure about Britannia - never the less its cheaper than you have been offered.

dellboy102

I'll do that, whats going to be the total cost of switching mortgages for you