What do you think of this mortgage?

Sir_Harry_Pearce

National Counties has a 5 year fix with 1.60 % discount of their SVR of 4.79%. The fee is £1200. I am currently with them anyway so sticking with them would cut out paperwork and evaluations etc.

A rate of 3.19% for 5 years seems good. I have read somewhere that the BoE base rate is likely to stay at 0.5 % over the next three years. I know that National Counties can do what they like with SVR but if there is some link to base rate, their SVR might not change that much. So I could get 3.19% for at least 3 years.

What do you think of the mortgage deal?

kingstreet

Is it a fix, or is it a discount?

It's not clear which.

kingstreet

I've had a look on the lender's website.

3.19% discount off SVR with £1,120 fees.

Do you want a variable product? Do you want to be linked to the lender's SVR? Are you borrowing enough to warrant paying a fee?

You haven't said what your loan to value is, so it's difficult to compare, but I'd say there are a good few fee-free remortgage products around, which could compete with that rate, both fixed and variable/tracker, saving you £1,100.

Then, there are remortgage products with better rates at a similar fee, where there are no valuation and arrangement fees, so you'll save money each month.

If you want to stay with your existing lender and that's the best they have to offer, then that's fine. Only you can decide your priorities.

Sir_Harry_Pearce

kingstreet wrote: »

I've had a look on the lender's website.

3.19% discount off SVR with £1,120 fees.

Do you want a variable product? Do you want to be linked to the lender's SVR? Are you borrowing enough to warrant paying a fee?

You haven't said what your loan to value is, so it's difficult to compare, but I'd say there are a good few fee-free remortgage products around, which could compete with that rate, both fixed and variable/tracker, saving you £1,100.

Then, there are remortgage products with better rates at a similar fee, where there are no valuation and arrangement fees, so you'll save money each month.

If you want to stay with your existing lender and that's the best they have to offer, then that's fine. Only you can decide your priorities.

I don't particularly want a variable product but it works out at 3.19% which seems low. I understand that SVR could change but perhaps not by that much. This is for a 70% LTV and I will be borrowing around 220k.

GMS

Would your income and status allow you to refinance elsewhere?

Sir_Harry_Pearce

Yes. We just want the best deal really. I called HSBC about mortgages today - 45 mins on the phone! Plus valuations and legal stuff...makes staying with my existing mortgage provider an attractive option but we would move if there was a better overall deal.

RickyJ

Have you seen 2.99% 5 year fixed the post office mortgage deal?

Sir_Harry_Pearce

RickyJ wrote: »

Have you seen 2.99% 5 year fixed the post office mortgage deal?

I have, thanks RickyJ. I think the fees are really high though - £1495 plus evaluation plus legal fees!

RickyJ

Sir Harry Pearce, yes the fee is high however its a one off fee for a 5 Year period. Usually if you get a 2 year fixed with a fee e.g. £900 and you again happen to repeat this for the next 3 years. Then the fees in total for 5 years would be similar or more than the 5 year post office fee 1495+Valuation+legal. Besides you can check the costing of valuation and legal with Post office if you want the exact figures for comparison.

Zero_Sum

Nationwide have a 60% LTV for 3.29% with no fee.

kingstreet

Zero_Sum wrote: »

Nationwide have a 60% LTV for 3.29% with no fee.

See post #4. The LTV is 70%.