First Direct 5 Year Fixed of 2.64%????

cambs1999

Hi there,

I have recently come off a FD 5 year fixed rate offset of 4.99% onto SVR of 3.69%.

I didn't consider the Britannia recent 5 year fixed of 2.79 as I really like being with FD. However I am really tempted by their new 5 year fixed of 2.64% with fees of £1399. My question is should I hold out and hope for an even better rate in the new future or grap this one while I can.

I currently have an offset mortgage with them which under their new rules I would no longer qualify for, however I like fixing for at least five years which they no longer seem to offer with their offset mortgages anyway.

Anyone got any advice????

Thanks:)

Crashandburn

In other words, can we predict the future?

Just see historically how good the rates being offered are and then use that to justify your selection for the next 5 years.

dimbo61

YBS do a 5 year offset fix at 3.19% fee £845 plus remortgage costs. 75% LTV
No idea of your mortgage amount so may not work for you.
FD only do 3 year fixed offset and fee £1999 for 2.69% fixed offset 65% LTV

jonas123

As has been said, it's impossible to predict the future...however, I'm currently on a tracker which is 2.5% and I thought that was a good deal. Fixing at 2.64% seems like a great deal, but that indicates what the market currently thinks interest rates are going to do. If the fee makes sense, i'd do it, but it has to be your decision

kingstreet

The market is being distorted by FLS and that will get greater towards the end of the year and in the first quarter of 2014. There are lenders committed to raising their net lending to meet the targets imposed on them to get the FLS funds they required. If they fail, they face Government penalties.

Many of them will have to take greater risks with higher loans to value, relaxed criteria lending, or cut margin further on the "prime" sub-60% lending we currently see between 2.5% and 3.0%.

michaels

kingstreet wrote: »

The market is being distorted by FLS and that will get greater towards the end of the year and in the first quarter of 2014. There are lenders committed to raising their net lending to meet the targets imposed on them to get the FLS funds they required. If they fail, they face Government penalties.

Many of them will have to take greater risks with higher loans to value, relaxed criteria lending, or cut margin further on the "prime" sub-60% lending we currently see between 2.5% and 3.0%.

But in the meantime I need to decide whether to go through with my Coop offer at 2.79% which expires at the start of May or stay on bbr+1.99% tracker in the hope of a better deal coming along. IN theory this FD deal is about 400 quid better but it is much less flexible so not enough to make me change although I notice coop have reduced the divi payment on mortgages from 60 odd quid pa to a fixed 7.50 so making that product slightly less competitive.

Morgage_Confused

YBS also do an even better 5 year offset aswell, if you have the LTV.

2.84% 60% £1345 fees.

dimbo61 wrote: »

YBS do a 5 year offset fix at 3.19% fee £845 plus remortgage costs. 75% LTV
No idea of your mortgage amount so may not work for you.
FD only do 3 year fixed offset and fee £1999 for 2.69% fixed offset 65% LTV