Looking to fix for 5 years help please

markbowen07

Hi Everyone,

My fixed rate is coming to an end 1/09/13 and i'm moving onto the SVR at 3.5%.

I'm looking to fix for at least 5 years and the deal i have seen is with First Direct its a fixed 5 year deal at 2.69% with an unlimited overpayment facility for the term of the fixed rate. There is a £499 arrangement fee though plus i would have to move my current account to first direct as per the T&C's

Does anyone else agree that this is a good deal or are there better one's to be had on the market.

Thanks

kingstreet

Mortgage amount?

Loan to value?

markbowen07

I have £62k left and the property is worth £115k so 54% LTV

demontfort

It is the best deal around at 65% and based on how much you owe it works out cheaper than their other 5 year fix 65% deal (2.49% with a £1999 fee). I’ve got the earlier 65% version for a 5 year fix at 2.64% but that came with a hefty £1399 fee and works out slightly more expensive. :mad:

As you are at 54% LTV I'm sure you can get even better deals but I'll leave that to the experts.

kingstreet

FD 2.69% is fixed five years and has a valuation fee of £149 arrangement fee of £499 a TT fee of £30 and you have legal costs to pay, which will run to around £500 for a remortgage - get quotes and check. There's a "final fee" of £149 when you repay the mortgage.

That means a total fee cost of £1,327 and interest of £138.98 per month, £9,666 over the five years.

The overpayments you mention are kept in an offset account as there are early repayment penalties to repay the mortgage during the five year fixed period.

As an alternative, you could consider a similar fixed rate for five years, but this time at 2.99%. There is no valuation fee, no arrangement fee and legal costs are paid for you. Your only costs are £25 TT fee and £90 final fee.

You can repay upto 10% of the balance each year, so not as good as the FD offer.

A total fee cost of £115 and interest of £154.48 per month, £9,384 over the five years.

So, you could save just under £300 and not have to move your current account, or have more flexibility in terms of overpayments.

Your call.

dmarks

I've just gone for the 2.99% 5 Year fixed with FD which is fee free so shouldn't cost as much. I have to say that as Banks go FD are great so would not worry too much about moving your current account to them if not much hassle.

Kingstreet - you say that they keep overpayments in an 'offset' account. Does this mean that you can redraw your overpayments if needs be?

kingstreet

I would imagine so.

You'd need to ask them, I'm afraid.