Principality BS - Mortgage

rscosworth

Guys,

Just had an offer accepted on a house, now were currently with northern rock on a fixed which were going to buy out of.

Has anyone heard of principality bs, they seem to be doing an outstanding rate fixed for 5 years with a crazily small fees (0.5%).

Is this the right thing to do? Or should i be warned off it in some way?

Cheers guys, your help is much appreciated as always

MortgageMamma

I have used principality for my clients a couple of times, and had no problems with them. can't really say if its the right mortgage for you, but as a company they are ok.

MarkyMarkD

Can you explain why you think it's worth buying out of your existing NR fixed rate mortgage? It is almost never financially worthwhile to do so.

How long were you tied in for (remaining); what is the penalty; what is the rate and what are you proposing to pay at Principality?

rscosworth

im not sure if it is financially worthwhile to do so, were tied in till may at 4.6%, penalty is around £1700, we actually cant use principality as were in scotland so ive been looking at britannia which has similar rates, looking at 5yr fixed @ 5.64%

We really need to be fixed to know what our monthly outgoings are each month.

If somoene can properly give me sound advice i will listen as i cant get a half decent mortgage advisor anywhere nearby.

cheers

PasturesNew

I have money with principality.

They have good savings rates.

I'd never heard of them - moved to Wales and they've got branches all over the place .... which was good as I was a bit worried having money somewhere I'd never heard of!

Now ... as it is MY money you're spending ... don't go defaulting on that loan will you!

MortgageMamma

I have savings with them also. They are a small society in comparison to others but service is usually good.

knuckledragger

I did my own remortgage with The Principality BS a few years back as they were doing a great deal. I was very happy with them and things went smoothly! They offered me a follow on deal by way of a deed of variance but it wasn't that competitive so I moved on.

MarkyMarkD

Thanks for answering my question.

On first examination, you'd be bonkers to pay £1,700 penalty to get out of a mortgage with a bargain rate of 4.6% and to then pay 5.64%.

Obviously it depends on the relative amounts of your old, and new, mortgages, but I would suggest that in almost all circumstances you should be looking to stay with NR until May and THEN look at your options.

This might lead to you paying an additional valuation fee and additional legal costs for remortgaging, but these won't come anywhere near the £1,700 penalty AND the extra interest (almost 1%) you'll be paying on the original loan amount.

apk1

I Would agree with Markymark, on the face of it it does seem mad, are you looking to move because of this ridiculous hysteria the press have whipped up over northern rock ? just remember you have their money, so if anything happened they would come to you begging! you have no risk at all, the likelyhood is that someone will buy them out, and you will continue on the same deal.

If you stay with NR, the additional borrowing you should try to arrange on a deal with approximately the same end date as the main part, so at that time if appropriate you can remortgage elsewhere.