4% Mortgage rate - High?

Cameron1590_2

Hello,

Looking for some advice.

We bought our first house last year and took a mortgage out with Nationwide on a four year fixed deal with no fees to pay upfront and £750 cash back.

We paid 87K for the house with a £10200 deposit which gave us an LTV of around 88%.

The interest rate for the mortgage is 4.04% which I didn't think was to bad given the high LTV and the fact that I was only on a FTC at the time with 2months remaining!

A lot of people have said that we have been done over as we are paying an extremely high interest rate?

Is that the case or does it sound about right? Mortgage was taken out September last year.

Thanks,

kingstreet

Small mortgages are usually best-served by products with higher rate, no valuation fee, no arrangement fee and a cashback.

It is likely this was the best overall value for money for your particular case.

You may have got 3% elsewhere, but with a £250 valuation fee, £995 product fee and £0 cashback.

The fees would far outweigh the savings from the lower rate.

AnotherJoe

Cameron1590 wrote: »

Hello,

Looking for some advice.

We bought our first house last year and took a mortgage out with Nationwide on a four year fixed deal with no fees to pay upfront and £750 cash back.

We paid 87K for the house with a £10200 deposit which gave us an LTV of around 88%.

The interest rate for the mortgage is 4.04% which I didn't think was to bad given the high LTV and the fact that I was only on a FTC at the time with 2months remaining!

A lot of people have said that we have been done over as we are paying an extremely high interest rate?

Is that the case or does it sound about right? Mortgage was taken out September last year.

Thanks,

Probably a mixture of the penalty for taking out a 4 year fixed rate and a relatively high LTV.

Have you looked at the calculator on here to see what your breakeven point is for remortgaging? If you are going to do it, sooner rather than later is better.