Britannia Mortgage 5 year Fixed - no fee

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Blueskys wrote: »

Spoke to the call centre this morning. They have changed the product code for the mortgage for me, after going through to their new mortgage enquires dept. - saving £849!

Likewise, 0800 587 2614 and option 2 if you are phoning the Co-Op, it only takes 5 minutes.

It sounded like they have been inundated with people switching over this morning!

1jim

Good on them making it so easy, nice to see a company behave responsibly, there's lots of companies out there who would refuse to make this change

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choprat wrote: »

I just sent my application this morning, very please with the saving!

My only concern is the valuation I'm on 59% LTV and while I hope there's no change to the value of my house (bought sep 2011) you never know

I was told by the co-op this morning that our drive by survey had been carried out and it came back exactly as we estimated.

Hopefully you will also have a drive by, which apparently is the case when you have a good LTV. If that is the case then I can't see you having any problem.

Good luck.

1jim

What rates are you guys all moving from?

I'm on svr of 2.5% and am torn on this deal

JimmyTheWig

1jim wrote: »

I'm really tempted by this deal but don't know what to do

I am currently lucky enough to be a standard variable rate of 2.5% with Cheltenham and Gloucester. I like the idea of a fixed rate but have read that interest rates are likly to remain very low for many years. I think we only have £73000 and 14 years left on this mortgage. I'm guessing the slight increase in rate isn't going to increase payments massively at this time but I suppose of interest rates remain low in 5 years time I will be kicking myself for ending up on higher svr, what are your thoughts guys
Cheers

Personally I would switch.
I can't see rates remaining low for too many years.
I certainly can't see SVRs remaining low for long. Santander put their SVR up from 4.24 to 4.74 a few months back. Do you really think that C&G will keep an SVR of 2.5 for years to come?
If I were you I would switch and reduce the term of the mortgage - either formally or by making overpayments.
By doing that, when the fixed period finishes in 5 years time your mortgage balance will be significantly lower which means an increased rate won't hurt so much.

geewhiz

1jim wrote: »

What rates are you guys all moving from?

I'm on svr of 2.5% and am torn on this deal

I'm with Halifax svr 3.99% so this is a decent saving.

latecomer

1jim wrote: »

What rates are you guys all moving from?

I'm on svr of 2.5% and am torn on this deal

We came off a fixed at 5.39% and were going onto a SVR of 4.74.

Think they should rebate those of us which just paid the £999 in the last couple of weeks

1jim

JimmyTheWig wrote: »

Personally I would switch.
I can't see rates remaining low for too many years.
I certainly can't see SVRs remaining low for long. Santander put their SVR up from 4.24 to 4.74 a few months back. Do you really think that C&G will keep an SVR of 2.5 for years to come?
If I were you I would switch and reduce the term of the mortgage - either formally or by making overpayments.
By doing that, when the fixed period finishes in 5 years time your mortgage balance will be significantly lower which means an increased rate won't hurt so much.

Cheers,
I don't think c&g can alter the svr asseemed guaranteed to be no more than 2% above base rate. They did alter the svr for some other mortgage customers and called It the homeowner variable rate and charge 3.99% though

michaels

1jim wrote: »

What rates are you guys all moving from?

I'm on svr of 2.5% and am torn on this deal

I am exactly the same - base +1.99 offset so £80 per month for 5 years more if rates don't rise so it is a gamble, the stake is £5k, the winnings are gighly uncertain but 1% on base for 1 year would cost £2400 if I stay on the tracker so I need a total of more than 2 years with base at 1.5% or above (or 1 year with base above 2.5%) to 'win'.

However despite the flexibility with coop I am still loosing out on the offset IO deal and will have to pay back 50k of capital over the 5 years that otherwise I could keep available for other purposes if required - it is indeed a conundrum. I have set the longest completion date possible to see if any other options come along.

ohwattagosiam

michaels wrote: »

There is a flexible overpayment facility of up to 10% PA which is cumulative (ie up to 10% each year) although if you overpay and then redraw you can not overpay again in the same year.

It is unclear if the year runs Jan-Dec, Apr-March or the anniversary of completion.

Free legals and valuation for remortgages too.

Cheers Michaels.

Having now spoken to somebody at Co-op, it appears to run Jan-Dec (i.e. calendar year).

As it's 10% of the amount outstanding at the end of the previous year, that's not a bad amount flexibility.

e.g. If you started with a £100k mortgage, and your normal monthly payment reduced the capital amount by £4k in the first year, to £96k, you could overpay another £10k without being penalised.

2nd year: Mortgage balance now £86k. Could overpay by £8,600 etc.

Almost as flexible as a tracker. Although, I'd only be able to overpay by more if I gained some unexpected income anyway.