Mortgages with ING Direct

Kelzabells

Hello Everyone

I am pleased to report that my house sold and the house me and my husband really wanted, we got, and for 12.5k under the asking price. :j

Now for the nitty gritty, we have been accepted for a mortgage with ING Direct, we got a 2 year fixed rate at 3.89% (we put down a 22.5% deposit due to equity from our sold home), but I have never had dealings with ING Direct, only Nationwide. I just wondered if anyone else here has a mortgage with them? If so, are they any good and what are your thoughts on a 3.89% fixed rate? It also had a fee of £750 which was added to the loan. We are paying about £915 a month, on a £176,000 mortgage loan over 25 years. It seemed to be the best deal for us on Friday night and it runs until April 2012.

After that we go on variable rate which works out slightly cheaper at the moment, but 2 years is a while so rates can go up.

What do you make of this deal?

Many thanks

kingstreet

Why ING?

There are several 2 year fixed rates which are lower than this and a few with lower fees and lower rates.

If you are borrowing over £150k, you'll probably be better off getting the best rate you can. Under £100k, find the lowest set-up costs and worry less about the fee. Inbetween is a grey area...

Watch out for the follow-on rate. ING's is 3.5%, which is good. The other rate/fee options are also sub-4% for follow-on.

Kelzabells

It seemed to be the best rate for us last Friday, going by my advisor's updated software list. We would have got an even better deal if we had the 25% deposit, we just couldn't push to it.

We could have gone for the 2 year tracker, which was slightly cheaper every month but not by much, so I decided to go fixed rate, that way we knew that we could budget every month.

kingstreet

Mortgage amount?

Kelzabells

We are paying about £915 a month, on a £176,000 mortgage with a 25 year term.

We bought for 227,500 and after fees have a deposit of around 52,000.

kingstreet

ING's fees total £1,090 with the valuation fee included.

I'd have a look at other direct-only lenders. There's a 3.49% fixed until 30/06/2014 and is £880.15 per month for a 25 year repayment mortgage at £176k on £227k. Fees come to £826 in total.

Standard rate is 3.94%, slightly higher, but there's no guarantee either lender will keep its rate at this level, or at a similar difference.

Only downside is having to use one of its panel solicitors.

If you ignore the follow-on rate, there are at least 24 products with lower overall two year costs you could consider.

mungobella

For what it's worth, I was using ING for a mortgage on a house that I ended up not buying about two years ago. I was really impressed by their service. Their surveyor said the house was of non-traditional construction and thus not mortgage-able through ING. They refunded all of my fees to that date and were good about keeping in touch and very clear. Even though it didn't end up like I wanted, I was impressed enough that I'll strongly consider using them for a mortgage when I buy this summer.

Kelzabells

Thank you for your input Kingstreet, I really appreciate it. We have started the process now with ING and I have sent them all our payslips etc... we did pay the fee for the survey which was £145.00, plus a fee for holding the rate. If I decided to go for another deal, would I lose this?

Also, thank you Mungobella, good to know someone has had good dealings with them, I'm sorry however that it didn't work out for you with the house.

kingstreet

Kelzabells wrote: »

If I decided to go for another deal, would I lose this?

Probably...