Stay with current lender or see broker?

dizzyscot

Hi all,

Just looking for some opinions/general advice. I have a 5 year fixed rate of 4.89% with the Scottish Building Society which is coming to an end in September of this year. I have received a letter from my lender offering a new fixed term of 2.99% for 3 years with no arrangement fees. One of the main benefits is that I can switch to this rate immediately instead of waiting until September, saving almost £500. I have had a look on various comparison sites and I can't see a 3 year deal that would better it when arrangement fees are taken into account. Would it still be worth my while getting a broker to check it out in case they can find a better deal that I can't find online? I don't have a financial advisor so am not sure how to find someone who I can trust.

Thanks in advance for any advice offered!
Dizzy

ChopperST

Use your new offer from your current provider and then have a look on moneysupermarket et al. to benchmark it. As you rightly say, in the current market alot of the better deals have quite high arrangement fees etc. so always factor those in.

Have a look on http://www.unbiased.co.uk/ to find a broker local to you.

amnblog

2.99% is the going market rate for 3 year fixed product at 80% LTV.

There are products with a much better revert rate after the 3 year period which could be a factor.

If you can get the mortgage down to 75% you can shave a chunk off of the rate.

Whether or not a 3 year fix is the right type of product for you and your circumstances is a different issue.

dimbo61

Big picture and all that!
You have lived in your current home for the last 5 years!
What are your plans for the next 3/5 years?
There are some very good 5 year fixes at perhaps 1/2 the rate you have paid for the last 5 years ( Under 3%) but remortgage costs and fees ADD UP.
What will your LTV be in 3 years, How old will you be in 3 years ( length of term)
Does the property need any repairs/extension/loft conversion?
Work and chance of moving area? Kids and schools, etc
Time to sit down and chat with the other half about long term plans

dizzyscot

Thank you for your replies! They are making me think that perhaps the 2.99% rate isn't the best I can get. Once this fix is up I should owe £117k on a £220k house so LTV is more like 55%. I am wondering if a 5 year fix would be better as rates are unlikely to be better than they currently are in the next five years? There's a good chance we will still be in this house in 5 years. I plan to get the garage converted soon to give us a wee bit more space as we have a two year old and another on the way. I'm only 30 so still young ( I like to think:)). I should also add that both myself and my husband should have excellent credit scores with no debt other than the mortgage, secure jobs, and no childcare expenses due to very helpful grandparents, so hopefully most lenders would be willing to give us a mortgage.

Thanks again!