Long term fix <2.49%

harpoboy

Currently own my own property with LTV well below 40%, and looking for a mortgage multiple of 2.5 times.

Is there anyone on the market who can offer me a 5 yrs + fix at or under my current rate of 2.49% variable?

Thanks

ACG

If its specifically a 5 year fix, i can only think of Woolwich, but there are numerous 2-3 year fixed rates or trackers with lower rates - but you could do with accounting for fees as you may find its not worth doing by the time you pay application fees, deed release fee etc etc.

Also how long does your mortgage have remaining? The follow on rate might also be quite important.

harpoboy

Thanks for this

There is about 14 years left on the mortgage, so I am quite keen to get a decent 5 or more year fix to guarantee payments longer term and also to obviate the need to pay fees every 2-3 years.

Bonuses have been good the past few years, so with a bit of luck I might just be able to pay off the mortgage once the five year fix expires.

ACG

I dont think this particular woolwich product allows you to overpay (worth double checking though).

Theres nothing to say you cant stick it in a savings account, but you might find its better to pay a slightly higher rate and overpay. Either way it probably wont make a massive difference one way or the other but its worth getting everything working for you if possible.

harpoboy

I cant see anything on the Woolwich website with 5 year fixes below 2.49%:

http://www.woolwich.co.uk/mortgages/fixed-rate-mortgages.html#

marathonic

If you've only 14 years left and expect the possibility of paying it off after 5, you don't really need the security of a fixed rate.

I'd assume that you are below 50% LTV and would, therefore, look at HSBC's new 50% LTV tracker at Base Rate + 1.99% (currently 2.49%) with no fees.

Interest rate rises are not expected for about 2 years so your mortgage could be half the level it is now before rates even start to creep up.

michaels

Yorkshire 2.44%
Halifax/Cheltglos 2.45%

But don't forget fees of 2k

unmissable

I am in very similar situation to you. I chose N and P at 2.74% fixed for 5 year but with only £295 fees (free valuation and legals). The difference between 2.5% and 2.75 % is ony about £21 per month for each £100,000 borrowed, therefore high fees take a long time to work their way out of the equation.

Don't be obsessed with the percentage, look very carefully at the fees.

20vt-rs

unmissable wrote: »

I am in very similar situation to you. I chose N and P at 2.74% fixed for 5 year but with only £295 fees (free valuation and legals). The difference between 2.5% and 2.75 % is ony about £21 per month for each £100,000 borrowed, therefore high fees take a long time to work their way out of the equation.

Don't be obsessed with the percentage, look very carefully at the fees.

Definitely consider the above, I was in a similar quandary when I re-mortgaged to HSBC, do I take their 2.99% tracker (BOE+2.49) at fee free or do I pay £599 to get 2.69% (BOE+2.19) tracker. I did the sums, and on my mortgage value it would have taken approx. 30months to break even on the difference. So I went with the higher rate, as in around 2 years or less (depending on how much I can OP) I will be in a better LTV bracket anyway and will probably re-mortgage to a fix or something else for a better rate (if that's poss in 2 years!).

Look at the whole picture not just the rate

harpoboy

Thanks all for this.

Mortgage value is a smidgen under £400k, so I am not really concerned about a couple of grand in fees.

More interested in a low LT fixed rate, and ability to overpay.

Bonus is likely to be north of £50k (before knocking 45% tax off), so I'd be keen to use that to good effect an get a nice tax free guaranteed rate by using it to pay down the mortgage.