2 year fix at 2.69%, 80% LTV no fees and no hassle – decent?

1978

We’ve been offered a straightforward change on our mortgage to a deal which is 2.69% fixed for 2 years, a saving of just under £40 monthly to us.



We’ve also been offered 2.39% but with a fee that by the time it was added to the mortgage (we haven't the means to pay up front) we’d be out of pocket by comparison to the first deal.


Both are with our existing lender and can be done over the phone or online.


We’re on approx. 77.5% LTV, and unfortunately can’t get this down to 75% quickly to get a better rate.


By the time we come out of the 2 year fix we should be within spitting distance of the 70% and could easily achieve it if we put the monthly savings we’ll be making of £40 towards this. We can then look for a suitable rate against the 70% (if house value doesn’t fall!) in 2017.


We had also been offered 3 years at 2.99% but I’m ruling this out for now as the 2 years gets us so near the 70%.


I appreciate that there are better 80% LTV deals out there, but taking into account no fees and pretty much no hassle, is 2.69% a reasonable rate?


Thanks in advance.

amnblog

Sounds like you want to stay where you are rather than pick up a rate 0.5% lower.

dimbo61

What rate are you on now ? what will it revert too?

lalman

Can you not get the property valued slightly higher to get the higher LTV? Just a thought...

1978

dimbo61 wrote: »

What rate are you on now ? what will it revert too?

2 product mortgage presently.
1 part at BOE + 3.74% - about 70% of our outstanding balance is at this rate
1 part at BOE +0.99% - about 30% at this (shame it's not the whole lot)!
Last time I worked it out it was in the region of 3.4% when both weightings averaged out.
Both for life.

The new mortgage will drop onto the SVR in May 2017. SVR is 4.74% presently! :eek:
By 2017 we'll be down to 70% LTV or very much thereabouts.