Will 5yr fixed rates improve if interest -0.25% next week?

lisyloo

Don't know why I'm hesitant about it!??

If it helps, I've heard very good things about First Direct Service, but don't believe me, do some seraches on board like https://www.foool.co.uk

We live in Cumbria, and have local offices. Worth paying more? probably not!

I've had mortgages for 17 years and I've only been in a branch a couple of times.
Occassionally I've been in to make overpayments, but as First Direct are a "direct" organisation then I'm sure they much better set up for doing things electronically.

Make sure you get to the bottom of your reservations.
Also I find it very helpful to do some calculations.
e.g. work out 0.23% * capital * 5 years.
On my mortgage that would come to about £2000.
This might make it a little easier to decide.
i.e. Do you want to pay £2000 for availability of branches for 5 years?
I knwo what my answer would be, but you need to get to the bottom of your own reservations.

lisyloo

"arrangement fee £299 / fixed offset Mortgage booking fee of £299"

- so £598 (although the Cumberland want £795!).

I don't think you have to have the offset if you don't want it.
If you have a non-taxpaying spouse then you might not need it as you can get better savings rates elsewhere.
Also I think First Direct do a chepa valuation and free legals but make sure you check it out and compare ALL the fees not just arrangement.

lisyloo

bank of england are simply going to ignore inflationary pressures.......

I find that hard to believe.

or change the way inflation is calculated so it looks like their not ignoring inflationary pressures

That's quite believable
e.g. fuel, gas and food have gone up but don't worry as kitchen cupboards and costume jewelry has got cheaper :-)

dimbo61

hi andy just read your second post re local office and local lender .
I am with YBS and they have an office in my home town which is very
useful. know the staff and can pop in and change payments, savings , ISA,s
very easily.
Hope you are happy in your new home

dweeby

lisyloo wrote: »

If it helps, I've heard very good things about First Direct Service.

Having taken about 30 seconds to change my mind about the Cumberland, I called First Direct to get a quote. Unfortunately they can only speak to me on Thursday! Either very popular, or not so good customer service...

Can I wait until Thursday to save £1000+? would I be here if I couldn't?

Rafter

Prices for 5 year mortgages are based on 5 year swap rates which already price in an expectation of falling base rates in the short term.

Much of the benefit hasn't been passed on though, because regardless of the rates, the banks and building societies need to fund their mortgages from savings because a lot of the money markets are still closed.

When savers (including those on this site) are demanding 6% plus for their money, you aren't going to get great sub 5% deals right now.

That may change fairly quickly if things settle down, so you might want to think about going for a 2 year deal or finding a mortgage provider who doesn't charge Early redemption charges so you can switch without penalty.

Remember to factor in all the fees too rather than just looking at interest rates. As others have said, £'000s of up front fees can disguise a bad value mortgage, even though the rate looks good. You should always compare the 'full cost' over 5 years or whatever the mortgage deal is to get the 'fair' picture.

Good luck

R.

lisyloo

Can I wait until Thursday to save £1000+?

What stage are you at in the house buying process?
Are you in a long chain?

There are many things that have to happen when you purchase a house
e.g. each party has to have a survey done by a surveyor, legal work has to be done e.g. local searches, contracts have to be read, understood and signed.

It really depends on where you are in the process and whether there are any timing pressures.
If you are at the begining of the process then I wouldn't worry too much about a few days.

Did you say you would accept any cancellations? That way they might be able to fit you in earlier.

As this is the best 5 year rate on the market then I suspect it's popular but I'm speculating.

ds1980

you get get mip's before you complete. I never pay anything until i have to so have 3 mip's in place and then choose the best one when i need to.

don't really understand wy you have to wait you should be able to get mip over the phone. If not find a broker and get them to do it.

theyll be so pleased if you tell them which product you want aswell!

good luck

lisyloo

don't really understand wy you have to wait you should be able to get mip over the phone

My mortgatge lender is Britannia.
I'm not sure about mip (mortgage in principle) but if you want to apply then they allow about 1 hour for the phone call (to take all your address details, work details, salaries etc.).
I have found it rarely takes that long, but they have to book you an appointment for the phone call and if they are very busy then it can be several weeks before you get an appointment althougth you can put your name down for a cancellation.

pamelab21

dweeby wrote: »

Having taken about 30 seconds to change my mind about the Cumberland, I called First Direct to get a quote. Unfortunately they can only speak to me on Thursday! Either very popular, or not so good customer service...

Can I wait until Thursday to save £1000+? would I be here if I couldn't?

Try calling them again at a less busy time, I missed their callback which I also has to wait 3 days for, I left a message for them to call me again and then waited an hour or so and tried again and managed to get straight through to them.
They are v. busy as they seem to have the best offers at the moment.
I am waiting on my paperwork coming through from them this week but I found them very helpful and knowledgable on their products.
I am still keeping an account with my current bank just in case but I am going to take full advantage of the offset available so will also set up a few accounts with them for the 5 year term.

Good luck whatever you choose.