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Egg mortgages - good or bad?

Hi,

This is my first time posting so apologies if I'm duplicating someone else's query. I've tried searching and am 99.9% sure it doesn't, so here goes...

Basically the best - and most affordable - deal I can find to replace my existing fixed rate at end of March is Egg's 3-year fixed rate at 5.39% with £499 set up fees.

But I've never heard of Egg doing mortgages before and after all the bad press they got recently over their credit card shenanigans, just wondered if anyone has had or heard of good or bad experiences of their mortgages...

I've done the maths using Martin's guide and the cheapest 2-year deal would only be manageable if I add the £789 arrangement fee to my mortgage, which I'm reluctant to do. (I'm worried I'll never pay my mortgage off if I'm always adding remortgaging fees). It also works out £220 a year more expensive than Egg deal.

So another quick question if poss....

I know no-one has a crystal ball to predict rates, and I'm happy to pay slightly more for fixed rates to know my payments in the short term. BUT... am I crazy fixing for a third year just to get better payments now?

Any opinions or Egg insight would be v gratefully received. My brain's beginning to fry!!

Cheers :o

Comments

  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    jo_jo75 wrote: »
    I know no-one has a crystal ball to predict rates, and I'm happy to pay slightly more for fixed rates to know my payments in the short term. BUT... am I crazy fixing for a third year just to get better payments now?
    Cheers :o

    Interest rates are likely to be heading down in the short term, but 2-3 years from now, nobody has a clue with the world's economy being in such a state of flux. Personally I think interest rates will be 1-2% higher than they are now, due to the massive inflationary pressures that have been storing up. But then again, if we head into recession, they could go significantly lower. :confused:
    poppy10
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