first direct 5.15% 10 year fix-is it too long?

jem16

neiljc wrote: »

If I switched to First Direct and took their 5 year fixed at 5.25% I work out thet they compare as

First direct

repayments 874.26 x 60 months = 52455.60
Fees = 700.00

total 53155.60

First Direct's 5 year fix is 4.99%

According to their website repayments would be;

£715.55 x 60 months = £42933
Fees =£600

Total =£43533

Kellm9

neiljc wrote: »

ok first time ive tried to use a mortgage calculator.

fixed rate with Nationwide finishing in 2 months they have offered feefree loyalty 5 year rate of 5.63%.

We have a large equity in the house, mortgage sum £122000 on a £400000 value house.

If I switched to First Direct and took their 5 year fixed at 5.25% I work out thet they compare as

First direct

repayments 874.26 x 60 months = 52455.60
Fees = 700.00

total 53155.60

Nationwide

repayments 899.75 x 60 = 53985.00

No fees

Have I done this right?

I assume I can offer to pay the fees upfront rather than having any added to the loan?

also I am currently working part time so using the basic 2.5 x income math our amount based on salary is £120,000.00 is this likely to be a problem with First Direct?

Hi neiljc,

I just ran through the numbers and if it is for £122000 over 25 years I get...

Nationwide 5yr fix at 5.63% no fee monthly payment of £758.69 x 60 = 45521
FD 5yr Fix at 4.99% (not 5.25%) monthly payment of £715.55 x 60 = 42933 + the fees

The FD rate of 5.25 is until Dec 08 or 2yr fix. Not sure how you got the numbers into £899, did you do over 25 years.

Jem16 ... quicker typer than me...

neiljc_2

Thanks Kellm 9 and Jem 16

I used the wrong interest rate figure! and I calculated on the basis of repaying over the remaining 18 years left on the existing mortgage.

using FDs calculator they have the monthly payments over the remaining period as

FD = £ 865.92 x 60 = 51955.20

fees including valuation = £700

Total £52655.20



Nationwide = £ 908.86 x 60 = £54531.60

No Fees

so I make that a saving of just under £2000 over 5 years.

Have I finally done it right this time?

allan673

just had a check for you, i get :-
first direct 4.99 over 18 years
if you pay booking and valuation fees up front (£398), then add £299 arrangement fee to loan (£122,299) over 18 years.

first direct £122,299 @ 4.99% over 18 years
i get £859.14 per month x 60 = £51,548

or nationwide £122,000 @ 5.63% over 18 years
i get £899.75 per month x 60 = £53,985

saving you £2437 over 5 years (or £40.61 per month)
then £2437 - the £398 fees you paid = £2039.00 total saving over 5 years.

Gambler

With the fees involved in remortgaging these days I'm seriiously considering the 10 year fix over the 5 year.

Lillys_mum

5.15% is a good rate.
We have signed to a 10yr deal with Halifax and have a rate of 6.04% so I think you have a good deal.

We took a 10 yr fix as we know we can afford that and would rather know what we are paying for the next 10yrs while the kids are still dependant on us - after 10yrs the youngest will be 12 and the older 2 will be 17 and 19 so should be on their way out the door!!!