Re-Mortgage - 5 year deals

Flash_G_2

I have asked previous questions about when I can mortgage etc, however I am now within the time frame when I can re-mortgage.

I am looking for a 5 year fixed rate deal with 60% ltv and I see over the last week there have been a whole raft of changes and better deals offered.

House - £225,000
Mortgage - £126,000
Term - 16 years

I was going to go for the co-op, 2.79% £999 fees (valuation standard legal free) but there seems to be other products out there which might come close to this?

Tesco Mortgage - 5 year fixed @ 3.29% £195 fees (valuation standard legal free). You also get Tesco Clubcard points 1 point for every £4 spent, so that works out to approx 12,000 clubcard points over 5 years which can be converted for rewards.

The post office and Nationwide have new deals but they are slightly worse.

I assume the co-op deal is the best out there still?

Have I missed any other recent deals? Is it possible to get anything better either direct or through a broker?

Thanks.

latecomer

We have gone for the co-op product as it was by far the best on the market just before Christmas. Others have deals that are getting close but still not as good last time I checked.

We are borrowing pretty much the same amount as you.

michaels

Flash_G wrote: »

I have asked previous questions about when I can mortgage etc, however I am now within the time frame when I can re-mortgage.

I am looking for a 5 year fixed rate deal with 60% ltv and I see over the last week there have been a whole raft of changes and better deals offered.

House - £225,000
Mortgage - £126,000
Term - 16 years

I was going to go for the co-op, 2.79% £999 fees (valuation standard legal free) but there seems to be other products out there which might come close to this?

Tesco Mortgage - 5 year fixed @ 3.29% £195 fees (valuation standard legal free). You also get Tesco Clubcard points 1 point for every £4 spent, so that works out to approx 12,000 clubcard points over 5 years which can be converted for rewards.

The post office and Nationwide have new deals but they are slightly worse.

I assume the co-op deal is the best out there still?

Have I missed any other recent deals? Is it possible to get anything better either direct or through a broker?

Thanks.

Aren't the tesco points only worth about £240?

Flash_G_2

michaels wrote: »

Aren't the tesco points only worth about £240?

I think if you get the max rewards (ie the 4x reward voucher offers) it is closer to £500.

Flash_G_2

latecomer wrote: »

We have gone for the co-op product as it was by far the best on the market just before Christmas. Others have deals that are getting close but still not as good last time I checked.

We are borrowing pretty much the same amount as you.

I think it probably still is the best direct mortgage but I am unsure if a broker can beat it?

kingstreet

Not at the moment, no.

Later in the year, as the battle for business hots up, across the level playing field of FLS (funding for lending) rates may be lower, as lenders cut margin to try to make their lending targets, for fear of being penalised by the Government.

Flash_G_2

kingstreet wrote: »

Not at the moment, no.

Later in the year, as the battle for business hots up, across the level playing field of FLS (funding for lending) rates may be lower, as lenders cut margin to try to make their lending targets, for fear of being penalised by the Government.

Thanks very much for the information.

latecomer

Just noticed the official post saying the post office have just launched a 2.74% 5 year fixed with £995 fee - thats even better.

kingstreet

Any lender which is using FLS is funding its lending at 0.5%pa, that gives quite a margin to reduce the rate if it wants to really compete for market share.

These are only the opening salvos in the rate war which will probably unfold this year.

Flash_G_2

latecomer wrote: »

Just noticed the official post saying the post office have just launched a 2.74% 5 year fixed with £995 fee - thats even better.

I saw that deal but unfortunately I don't think valuation and legal fees are included:

http://www.postoffice.co.uk/our-full-range

michaels

Flash_G wrote: »

I saw that deal but unfortunately I don't think valuation and legal fees are included:

http://www.postoffice.co.uk/our-full-range

So the lower Post Office rate is never going to cover the legal and valuation fees that are included in the coop deal plus you don't get the flexible features.