help/advice on fixed deal plz.

1815VIL

posted something about this before but have more info now.have a 90% £157500 morgage.it ends june and have been advised that a 2yr fixed 5.67% deal with free legals/valuation product fee of £999 though, is the best about at the moment.been told better rates are out there but there fees over the 2yrs make them worse deals?could do with sum thourghts on this?cheers

MortgageMamma

yes thats common practice. the amount of the mortgage vs fee's is a major consideration when remortgaging. If you are using a broker ask them to show you the maths, show you the sourcing results and show you the entire costs of 2 years. the monthly payment and interest rate of the mortgage is often quite deceptive to the untrained eye!

MM

1815VIL

so pickin your brain now does it sound anygood to you?it is with a broker by the way.its abit of a shock as im coming off a 4.59%!!

MortgageMamma

rates have gone up since the 4.59% days. you would have to tell me who the lender is, what the arrangement fee's are and much more information before I could say its the absolute best product for you, but it doesnt sound too bad at the moment.

1815VIL

halifax is lender no fees except £999 product fee.

MortgageMamma

whats your income? and monthly credit outgoings? whats your property worth and how much do you need to borrow? did you check that your mortgage broker has access to all mortgage lenders?

1815VIL

Joint income of 53k,outgoings are just household bills nothing fancy,no loans or anything.property value £185000k,need mortgage of £157500.broker has access to all lenders.

MortgageMamma

ulster bank 5.65% fixed until 31/03/2010 with a £495.00 fee - monthly over 25 yrs repayment £981.35

Abbey 5.69% fixed until 02.06.2010, 699 fee, exclusive to home of choice, £985.15 per month on 25 yr repayment

Halifax (sesame & mortgages direct exclusive)5.67% fixed until 30/04/2010 with a £799 fee - monthly cost over 25 years repayment £983.24

I think they are all more competitive. Think you should have a word with your broker - there could be a perfectly plausible explanation why he has not recommended these, i.e. he may not have access to them, but check all the same as I can't find the deal he is recommending! (I suspect C&G?)

MM

NeilQuinn

Think you've answered your own question there, MM. If he's not a member of those networks then he can't recommend them. They are exclusive's after all.

MortgageMamma

yep true. always good to get another perspective though! - OP let me know who your mortgage brokers network is, as I have a system that brings up everyone else's exclusives as well as my own - it could well be that he's recommended the best available to him.

whiteflag_3

my bigger concern is in the current climate , why the heck would you want / be advised to take a 2 year fixed anyway?