Post office mortgage

Ste171

Hi all, I'm looking to apply for the 5 year post office fixed rate 75%ltv but unsure to go for the Standard no fee at 3.59% or the fee assisted at 4.09%

House is priced at £102000 and I'm looking to borrow £76500 over 30 years but cannot decide between the two.........any thoughts?

Cheers

Ste

Ste171

Soooo anyone have any ideas

harvey115

I believe you are quoting incorrectly:

3.59% should be with Fee
4.09% would be fee free

If you think you have quoted it correctly, then its a clear choice of 3.59% as its fee free as well as a smaller percentage.

You need to give more details on the deals:

Term = 30years
Deal term = 5years
Initial Interest = 3.59%
Interest afterwards = 5%
Fee = £500

etc...

Hope this helps.

Ste171

copied/pasted from the post office website (unable to link)


5 year fixed
No Arrangement Fee 3.59% 30/09/2017 4.49% 4.2% APR - £0 arrangement fee



5 year fixed
Fee Assisted 4.09% 30/09/2017 4.49% 4.4% APR - £0 arrangement fee
- Free standard valuation
- Remortgages also have standard legal fees paid by Lender


have just realized that the no legal fees is for remortgages only, im a first time buyer so would assume that the free standard valuation wouldnt be worth the increase in rate (no idea how much a standard valuation costs!)

harvey115

You can estimate the valuation amount with the house price. Go to e.surv website and get an estimate from their standard quotation plan for homebuyers.

The valuation amount charged by the lender would be slightly less then that figure. Just checked and the amount you might be charged by the lender would be somewhere between £400.

In 5 years the higher rate would cost you around £1,400 so its best to use the one with less interest rate but with valuation cost on it. As you will be better off.

FYI - I am not Financial Adviser and my comments should not be taken as advice.