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Loughborough BS
brock-cruse
Posts: 196 Forumite
Hi all
Well now getting a bit peeved cos all my work at checking out good fixed/capped rate deals is going to waste as they are all being pulled (going to see independednt, no fee, whole market advisor tomorrow!)
However, Im normally a fixed rate or capped rate girl but have come across this product for those local to Loughborough...
"5.15% The overall cost for comparison is 6.7% APR
Product Description This product includes a discount of 1.75% off the Society’s standard variable mortgage interest rate, currently 6.90%, for a period of 3 years following completion of the loan. At the end of the 3 years the Society’s prevailing standard variable mortgage interest rate will apply. The interest rate charged cannot go below 2%. "
Plus free valuation, 10% overpayments allowed per year, fee free, ERC = 5% for the 3 years.
So what do you think? Will this be good considering there is supposed to be an increase in interest rates or do you think i should stick to fixed rate?
Never considered this type of deal before so can anyone give me a worst case scenario?
Thanks for any advice.
Well now getting a bit peeved cos all my work at checking out good fixed/capped rate deals is going to waste as they are all being pulled (going to see independednt, no fee, whole market advisor tomorrow!)
However, Im normally a fixed rate or capped rate girl but have come across this product for those local to Loughborough...
"5.15% The overall cost for comparison is 6.7% APR
Product Description This product includes a discount of 1.75% off the Society’s standard variable mortgage interest rate, currently 6.90%, for a period of 3 years following completion of the loan. At the end of the 3 years the Society’s prevailing standard variable mortgage interest rate will apply. The interest rate charged cannot go below 2%. "
Plus free valuation, 10% overpayments allowed per year, fee free, ERC = 5% for the 3 years.
So what do you think? Will this be good considering there is supposed to be an increase in interest rates or do you think i should stick to fixed rate?
Never considered this type of deal before so can anyone give me a worst case scenario?
Thanks for any advice.
0
Comments
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How does the above compare to the fixed rate offered by my current provider (Coventry) of 5.89% for 5yrs (6.8% APR), no fees, free valuation, ERC of 4% of balance, overpayments of 5% of balance per annum. But much more in terms of cost per month! A safer bet???
I am currently in a capped rate deal with them at 5.99% (at its cap) but will probably pay the redemption fees of approx £1k to get out of it with a new deal. Although i can port my current mortgage they do not currently offer a further deal for the extra mortgage for the 2 years remaining on my current mortgage...hence in 2yrs time would have to find another deal for that part of the mortgage...easier just to pay the fees now and get a brand new deal for the whole lot? Plus a lot less confusing.0 -
Tough one. your comparing a fixed rate to a variable rate. so it depends how high you think rates will go.... and more importantly for how long!!0
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