5 Year fixed @ 2.89% How long will this rate last.

LULULU1

First Direct are doing a 5 year fixed rate of 2.89% for a 65% loan to value mortgage.

The fee is £1500 and its guarantees you this rate for 6 months but if you do not complete in that time you lose your fee.

I need to sell my property and am concerned that I may not be able to sell and buy a new property within the 6 months timescale.

So I would like to wait for a little while before jumping on this rate.

My question is how long does anybody think this rate will last. I noticed that on Friday West Brom Building are also doing a 65LTV at 2.99%.

Thanks for any help.

Lu

ACG

Nobody apart form the head of mortgages at First direct can answer your question.

£1500 fee is quite high. Sometimes its better to pay a higher rate with a lower fee. If you can find a 3% deal with no fee (for example) then you need to work out what the difference will be on payments - would you end up saving £1500 by choosing a slightly lower rate?

Thrugelmir

LULULU1 wrote: »

My question is how long does anybody think this rate will last.

Much will depend on the take up of the offer. Or if there are events that impact the wider market.

kingstreet

If you haven't sold your property yet, you should not be paying fees or spending money on the one you intend to buy.

If someone comes along in a position to proceed, your vendor may well sell to them instead, resulting in you wasting the money you've spent.

dimbo61

As others have said you need to sell your home first and consider moving into rented if you cannot find the right property for 6/12 months.
A five year fix may be longer than five years our new deal is for 62 months.

LULULU1

Thanks for your advice all.

Our home is on the market now so we will wait before signing up to any deals.

I realise that no one knows how long such a rate will last but just wondered if given what is currently know of the economy whether anyone feels it may drop further, stay on offer for a few months or rise.

I do realise it will be a guess.

Great advice and really appreciated.

Thrugelmir

Products continually change. Lenders allocate funds into tranches. So they will be a cut off point.

Much of the cheap funding currently available is down to Funding For Lending scheme. So at a point the funds will be fully utilised. Irrespective of BOE decisions rates may edge upwards.

pinkteapot

Also worth noting is that HSBC change their booking fees ALL the time. We've just applied to remortgage with HSBC on a lifetime tracker. The product and interest rate have been identical for a year now. Depending on which week you look at their website, the booking fee is £299, £499, or £999. :eek:

Luckily, because we're remortgaging, we can apply whenever we like so have waited for the fee to drop to £299 again. You get shafted if you're applying for a mortgage normally, as part of a house move, because you pretty much have to apply when you find somewhere to buy, so you can't wait to see if the product fee changes!

I know ours is HSBC and First Direct are separate, but they're part of the same group so may have similar practices. Keep an eye on the product while you market your house and see if the fee changes at all....

LULULU1

2.89% seems to be the best 5 year fixed going.

Anyone come across something better..........

getmore4less

How big a mortgage and term

LULULU1

Looking for about £210-210k

65LTV

No CCJs or missed payments.

Looking for 18 years to take me to 70 years old. Lump sum and workplace pension in Royal Mail.