Help to Buy Nat West

okborednow

Hi All,

As I said in previous posts my fiance and I are looking to buy a home with help to buy in the next few months. Initially we were looking at Halifax as they were the main (or possibly only!) provider. The new Nat West offerings have thrown the cat among the pigeons though. Their 2 year fixed rate beats Halifax as it's 3.15% as opposed to 3.19% and is free fee where Halifax is charging £999. My dilemma is they are also offering a five year fee free fixed rate at 3.59%. What are everyone's thoughts on short vs longer fixed rates please?

Thanks

londonTiger

its unrealistic to assume interest raes will stick so low, its likely to go up soon. 1 year? 2 years? 3 years? who knows.

Building_Surveyor

You need to work out the cost in real terms. A lower rate but higher product fee won't necessarily work out the cheapest.

okborednow

Thanks for your responses guys. In terms of cost the Nat West 2 year fixed rate is definitely the cheapest in real terms as it is 3.15% with no product fee. However that would leave us in the position of having to remortgage in two years and there's no way of knowing what will happen with interest rates by then. Alternatively we could take a higher rate of 3.59% with no product fee but know that that's what we're paying for five years.

As interest rates are so low at the moment is a longer term fixed rate the way to go?

CluelessFTB_2

Are Nat West doing Help to Buy?

okborednow

As of a week ago they are yes

FTBSOS

okborednow wrote: »

Hi All,

As I said in previous posts my fiance and I are looking to buy a home with help to buy in the next few months. Initially we were looking at Halifax as they were the main (or possibly only!) provider. The new Nat West offerings have thrown the cat among the pigeons though. Their 2 year fixed rate beats Halifax as it's 3.15% as opposed to 3.19% and is free fee where Halifax is charging £999. My dilemma is they are also offering a five year fee free fixed rate at 3.59%. What are everyone's thoughts on short vs longer fixed rates please?

Thanks

good luck with your application, I am trying to get a mortgage with natwest with the help to buy scheme.

londonTiger

okborednow wrote: »

Thanks for your responses guys. In terms of cost the Nat West 2 year fixed rate is definitely the cheapest in real terms as it is 3.15% with no product fee. However that would leave us in the position of having to remortgage in two years and there's no way of knowing what will happen with interest rates by then. Alternatively we could take a higher rate of 3.59% with no product fee but know that that's what we're paying for five years.

As interest rates are so low at the moment is a longer term fixed rate the way to go?

i didnt make my point earlier properly as I was on my smartphone.

internet rates will definately go up soon as bank of englad base rates are very low right now. it would be much more prudent to go for the 5 year fixed rate at 3.85%

The interest rates have been supler low for several years now. As soon as the economy gets back out of recession the base rate will increase. I wouldn;'t be surprised if the rate was to increase some time this year.

CluelessFTB_2

okborednow wrote: »

As of a week ago they are yes

Oooo interesting thank you!!

okborednow

Londontiger, that's what i thought thank you. I was concerned as some people i've asked said that BoE have indicated interest rates won't rise for years so a long fixed is a bad idea. I think i'd like the security though

Clueless...you're very welcome

Dashikii

i thought the help to buy wasn't going to start until January 2014? Have i missed something?