Britannia Mortgage 5 year Fixed - no fee

Flash_G_2

Has anyone else had to pay a £100 switching fee?

It seems I was fortunate and didn't have to pay this, perhaps I wasn't as far down the 'mortgage road'?

Lifes_Grand_Plan

Just got off the phone to Britannia - its a weeks waiting list to speak to someone to apply for the mortgage although they can do a basic illustration over the phone immediately.

The guy knew exactly what I wanted as soon as I opened my mouth, said the deal had been amazingly popular!!!

em_z

Is there a difference between the Co-op mortgage and the Britannia one? I looked online and the rates seem the same. Am I missing something?

Also I'll be moving from the Halifax' SVR which is 3.99%. Will there be any fees to pay either from the Halifax or the Co-op?

Thanks:)

ohwattagosiam

kingstreet wrote: »

What you are seeing here is the playing field being flattened by FLS.

HSBC already has the cheap funding facilities which has allowed it to undercut the other players in the mortgage market in the last year or two.

With FLS, any lender taking part has seen its funding rates cut down to about 0.75%, so they can all use this to compete more effectively.

As the year goes by, there will be more and more pressure on margins to enable lenders to meet their lending targets, resulting in lower rates for the better quality business.

There will be a sub-2.5% 5 year fix before too long.

So what you're saying is: there will be better deals around in the next few months.

As well as fixed rates, it probably also means that the margins on HSBC's tracker rates (even their lifetime trackers) will reduce from their current best of 2.29% + BBR. Might be worth me hanging on for a bit.

Although fees free for this 5yr fix is a good incentive... What to do, what to do

Gambler

michaels wrote: »

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.

When can I apply for this if my current fix ends 30th May?

I'm torn between staying with First Direct on the 3.69% offset SVR as I do like the flexibility or taking a traditional fix.

Flash_G_2

Gambler wrote: »

When can I apply for this if my current fix ends 30th May?

I'm torn between staying with First Direct on the 3.69% offset SVR as I do like the flexibility or taking a traditional fix.

My mortgage ends on 3rd June and I have applied and been accepted on the Co-op deal.

So you can apply now.

Thrugelmir

ohwattagosiam wrote: »

As well as fixed rates, it probably also means that the margins on HSBC's tracker rates (even their lifetime trackers) will reduce from their current best of 2.29% + BBR. Might be worth me hanging on for a bit.

FLS is only a temporary scheme. So lenders will only offer products with revert to rates.

HSBC has no need of FLS and is only big 6 lender not participating.

ohwattagosiam

Thrugelmir wrote: »

FLS is only a temporary scheme. So lenders will only offer products with revert to rates.

HSBC has no need of FLS and is only big 6 lender not participating.

I understand that FLS will last until January 2014. If that's the case then as kingstreet posted earlier:

With FLS, any lender taking part has seen its funding rates cut down to about 0.75%, so they can all use this to compete more effectively. As the year goes by, there will be more and more pressure on margins to enable lenders to meet their lending targets, resulting in lower rates for the better quality business.

If the above proves true, I assume that HSBC (who I am currently with) will want to remain competitive, and so will need to adjust their margins accordingly to do that. Agreed?

I'm not quite sure what you're getting at with the part about lenders only offering products with revert to rates? Isn't that something that is done on all fixed and tracker mortgages (with the exception of lifetime trackers)?

Thrugelmir

ohwattagosiam wrote: »

I understand that FLS will last until January 2014. If that's the case then as kingstreet posted earlier:

Lenders have to draw down funds by January 2014. They then have 4 years to utilise the money.

Should not be overlooked that FLS is also directed at business lending. Where margins are far higher.

Any reduction in margin will be offset by higher underwriting criteria and minimum value of loan advances. Many best deals require 40% deposits.

So far take up of FLS has been slow. In the main this is due to the fact that some lenders are contracting their lending books not growing them.

ohwattagosiam

Thrugelmir wrote: »

Lenders have to draw down funds by January 2014. They then have 4 years to utilise the money.

Should not be overlooked that FLS is also directed at business lending. Where margins are far higher.

Any reduction in margin will be offset by higher underwriting criteria and minimum value of loan advances. Many best deals require 40% deposits.

So far take up of FLS has been slow. In the main this is due to the fact that some lenders are contracting their lending books not growing them.

Useful to know. So what about the rest of my post? What did you mean by "revert to rates"?

As for my circumstances, I've got a £90k mortgage with an LTV of around 50%, and no other outstanding debts. I'm pretty confident in qualifying for the better products, if any better ones become available. Maybe I'll just switch to HSBC's lifetime tracker, and if they come out with anything better in the future, I can switch to that as it's very flexible and penalty free.