Mortgage Offer - 5.49% Interest - Is this a comptetive rate

Huggins

Hi Folks, Have an offer from my existing mortg provider to renew the mort at 5.49% over 5 years. I notice however the actual APR is 7.1% - is this a competitive rate or not? (just noticed from the app.form it states 5.49% then lower down it states Annual Percentage Rate of 5.80% VARIABLE ( this is a fixed rate mortgage?) Then in the literature it states OVERALL % over 5 years is 7.1%?! Confusing stuff - can someone pls explain the basics to me as i'm not very mathematical!

Also The comparison tables have a host of 5% ish deals and i assume these are all quoted in interest rate rather than APR?!

Many thx for any help. Huggins

homer_j_3

The APR considers a wider amount of factors, where as the initial rate is just that, the initial rate.

Whether it is competitive or not, I do not know as its all relevant to your specific circumstances or have full details of the product.

That said, with base rate being where it is at the moment, providing it doesn't have massive fees attached, I can say that it seems pretty good.

dweeby

Huggins wrote: »

Hi Folks, Have an offer from my existing mortg provider to renew the mort at 5.49% over 5 years.

There were some better deals a month or 2 ago, but as far as I'm aware 5.49% for 5 years is good now (especially if there is no set-up).

Is there any set-up fee? presumably no valuation fee, how about penalties after the 5 years?

Added later: just checked, there is this at 5.29% 5 years £299 setup + some other charges. Probably worth sticking with your current provider tho'.