Switching mortgage provider after receiving mortgage offer?

getmore4less

https://www.barclays.co.uk/content/dam/documents/personal/mortgages/CoreRangeCustomerRateSheet.pdf

That 1.72%  tracker comes with a £999 fee

You need to compare any others using  1.49% with £1,748 fee
This 7year fix by Barclays is a sweet spot for those that can fix that long, especially as it is for 75% LTV 
shame you have the hoop(extra fee) to go through to get there 

i have a handy spreadsheet for breakeven  with no fee for various rate difference and terms.
Don't think anyone comes close to those even with fees(not that many have 5y fixes to match it) 

	Mortgage amount, no fee rate needed
Full term	£50,000	£100,000	£150,000	£200,000	£300,000
5	3.148%	2.313%	2.037%	1.900%	1.763%
10	2.290%	1.885%	1.752%	1.686%	1.621%
15	2.170%	1.826%	1.714%	1.657%	1.601%
20	2.123%	1.803%	1.698%	1.646%	1.594%
25	2.098%	1.791%	1.690%	1.640%	1.590%
30	2.082%	1.783%	1.685%	1.636%	1.587%
	rate difference, mortgage size needed
	0.10%	0.20%	0.30%	0.40%	0.50%
5	£815,403.27	£407,202.14	£271,136.04	£203,103.69	£162,284.85
10	£390,077.40	£194,729.29	£129,613.82	£97,056.52	£77,522.49
15	£332,237.86	£165,770.86	£110,282.50	£82,538.79	£65,892.95
20	£309,340.57	£154,302.64	£102,623.98	£76,785.14	£61,282.23
25	£297,093.14	£148,167.45	£98,526.22	£73,706.10	£58,814.43
30	£289,484.47	£144,355.64	£95,980.03	£71,792.73	£57,280.75
IO	£263,268.60	£131,634.30	£87,756.20	£65,817.15	£52,653.72

m4x1ne

Sorry to rehash an old thread. Just wanted to say thank you so much @getmore4less!

I went onto the 1.62% + BoE BR tracker (no ERC), then as soon as the first payment went out, switched onto the now 1.39% 7 year loyalty mortgage with £749 fee (added to mortgage). I couldn't switch using online banking for a reason I can't remember, but just got sent a link by Barclays to do it. Took 5 mins. Thanks so much for the tip, you've saved us a fortune

getmore4less

Good to here another track and switch has worked.

Other lenders have caught up with some  75% LTV 5y rates.

london21

m4x1ne said:

The mortgage we originally went for has a £999 fee too. Like an idiot, I paid the product fee for the mortgage up front. I'll know for next time: always add it to the mortgage & overpay later so you can back out. So there'd be a £150 switch fee to go to the tracker instead (could be worse for such an expensive mistake), but there's no getting that £1000 back anyway.

Have you tried to get the product fee back if the product is not suitable for you.

m4x1ne

I haven't, I don't think I can get out of it. But I didn't have to pay the switch fee which is good

amnblog

This was a scary thread.

First time buyers, not getting decent advice. Lining up a ten year fixed rate which has to be inappropriate. Then looking at the other end of the scale with a 2 year tracker.

First Time Buyers always get yourself some decent advice from a good Independent Mortgage Broker.

getmore4less

amnblog said:

This was a scary thread.

First time buyers, not getting decent advice. Lining up a ten year fixed rate which has to be inappropriate. Then looking at the other end of the scale with a 2 year tracker.

First Time Buyers always get yourself some decent advice from a good Independent Mortgage Broker.

OP said they wanted 7-10 and it was pointed out that the 10y are not that good.


With just getting under 75% LTV  the next main increment is 60% which would take a while 5-7years depending on full term/payment  before value changes 


Those joining the game at higher LTV get 5% increments which trend towards shorter terms easier to reach and bigger steps in rate reductions.
85%->80% is 2-3years again depending on starting term and value changes 


Chosen lender(Barclays) had a 7y 75% LTV at 1.49%(now 1.39%)  available with a track and switch(the tracker was a enabler not an option) pretty much the sweet spot for 75% LTV if you could do 7y.

Was a good option to benchmark the 5 year options from other lenders.


The 5 year rates have improved 3-4 months on from when the OP was looking so they are likely to be the better option now 

eg  Barclays took 0.1% off their 7y rates. but  0.35% off their 5y rates between late April and now. 

amnblog

This is not about second guess further repayment schedules and lending rates.

First time buyers are rarely going to spend 10 years in the same home. When they need to make changes for a new property, or in the event of a split that do not suit Barclays they are staring at a 5% erp.