Barclays End of Term mortgage ????

lottie_victoria

Hi, new here but have tried searching but cannot find the answer so here goes !

We have a Barclays repayment mortgage, our 2 year fixed rate comes to an end on 1 November 2012. Presumed we would go onto the follow on deal as set out in our mortgage offer 2 years ago, tracker rate of 2.49% + BBR which is currently 0.5% so would go onto 2.99%, currently on 2.95%.

A colleague has told me today, that their fixed deal with Barclays is coming to an end and the mortgage advisor (independent) has told them they could apply to go on "end of term rate" with barclays, this is currently 2.8% would need a new application but NO application fee, and are currently available for 2 or 5 years!!? Does this make any sense to anybody? I've never heard of this ? Assumed we would either automatically go on to tracker rate + BBR or we could apply for a new deal and pay application fee etc .....

Does this end of term rate exist??!!

Thanks in advance for any comments.

kingstreet

Your mortgage will roll onto the reversion rate set out in your mortgage offer and key facts illustration. You understand this to be BBBR + 2.49%.

As your end date approaches, Barclays may write to you to offer you a customer retention product. This may be better than your reversion rate, but it may also require a fee and will also impose early repayment penalties on you for a further period. You should think carefully about being able to make penalty-free overpayments, should this be a possible issue for you in the next few years.

If Barclays does not write, there is nothing to stop you calling them to ask about their customer retention products to compare them with your follow-on rate. Don't look online for them as I'm pretty sure they aren't published. Avoid looking at remortgage rates, as these are for those with other lenders looking to move to Barclays.

lottie_victoria

Thanks Kingstreet, have now googled barclays retention mortgage and found few things, nothing official from barclays, but a newspaper article saying what the offers are at present, they are changeable each month !

Apparently, and need to double check directly with barclays, but they are offering (upto 95% LTV!!) we are well under that, a fee free 2 year product at 2.79% or a fee free 5 year product at 3.49% presumably these have the standard tie ins !

So now, assuming we could apply and qualify, we have the dilema of going on to 2.99% (our payments would increase about £5 per month) and see what happens with interest rates or opt for fee free for 2 years at 2.79% (would decrease our payments by around £20 per month) or fix fee free for another five years at 3.49% (increase payments about £50 per month) but we would have the security of no increases for five years .....

Gut instinct is telling me to avoid 2 year at 2.79% as may not be able to get another decent fixed at the end of 2014 as could the interests be on the up then ....... who knows, i know!

Go onto follow on rate with no tie in (have no intention of moving, borrowing more, or paying huge amounts off, in next five years, but who knows whats around the corner) or move onto 3.49% for security for another five years ....... Decisions, decisions.

If we were to move onto follow on rate, and then decide to fix 6/12/18 months down the line, would have to pay arrangement fee on top again, currently £499 !

I know advice cant be given on here, but would appreciate thoughts of those with loads more knowledge than me

kingstreet

Check directly with them if those products are still current. Then compare with your follow-on rate.

lottie_victoria

Just spoke to Barclays!

Yes we are eligible for the retention rates, which are currently 2.89% (not 2.79% as i said earlier) fee free for 2 years or fee free for 5 years at 3.49% then would go on a tracker plus Barclays base rate after both of those, or apply again and go on a retention rate again (currently fee free).

Simple application to go through over the phone, would take about 30 minutes, no underwriting, no income details required (so what would take about 30 minutes i dont know?)

So 2 years at 2.89% or 5 years at 3.49% Help!!!

Once we come off our currently fixed rate and go onto tracker variable, only option to get back on fixed would be to pay a £499 application fee!

kingstreet

You need to decide on what type of product and term you require, then you can compare with remortgage options.

No-one can tell you which is right for you.

lottie_victoria

Need to think about things then

I rang Barclays last week, when colleague first told me, and Barclays didnt have a clue what i was talking about, when i said end of term mortgage offers .......... but when today i said retention department, she wanted to put me through to redemption department, but eventually got through to retention department and spoke to a very helpful chap . He's calling me back tomorrow to see if we have come to a decision, which can be changed and if rates were to change between now and November we could change the rate too!

dimbo61

What are your plans for the next 2/5 years?
Any kids planned ? Job changes ? Moving house ?
Is the 3.49% FIXED OR A TRACKER ABOVE THE BOE BASE RATE ?
I like long term security but only if you plan on staying for at least 5 years

lottie_victoria

No plans for anything to change, kids are teenagers, one is at uni (staying at home) and the other one will be working within a year or two (hopefully) !

Yes the 3.49% is fixed for 5 years, which is longish term security, and have absolutely no plans for moving house etc.

Have been playing with figures in mortgage calculator and the barclays base rate would have to rise over 1.25% by November 2014 for the two year fixed at 2.89% not to pay off!

Crystal ball anyone