ellie reviewing my mortgage

ellieh_3

We have been offered a stepped mortgage by northern rock 1st year 4.19% 2nd year 4.99% then 18 months back to variable rate . you pay £945 fees but receive £1000 cashback which would tie you in for the 3yrs 6months. Seems like a good deal as we are on a 6.59% variable mortgage at present but only have 5yrs 2months left for our mortgage to run. Is it a good deal or am I missing something.

herbiesjp

It really does depend on what mortgage amount you are looking at and who your current lender is

The fees seem fairly high,and you would have to run on their variable rate for a while or else pay back the £1000.

I think there could well be some other better rates out there for you, offering overall better fees and rates

ellieh_3

we have always been with northern rock. This new offer seemed a good deal as I hadnt realised the rate we were currently paying was so much higher than what was on offer. You tend to stick with what you have, but its made me think about changing

KTF

I would be looking at other lenders as the Northern Rock deal doesnt seem very good compares to whats available on the wider market.

As an aside (and before you changed it), please dont put your name in the title of the Threads as it makes it very confusing when you are trying to guess the content :-)

Rikki

Personally I wouldn't tie myself into any mortgage that meant I had to stay on a their variable rate for 18 months. The interest rates could be very high and you would be stuck with it.

Maybe try and find a good tracker mortgage for the remaining mortgage, or 5 year fixed rate.

Ian_W

I'm with Rikki on that.

Depends if your current Northern Rock product has any redemption penalties other the normal small release/sealing fees. If it doesn't, I think there are many better deals out there than NR are offering you.

For example, NATIONWIDE are offering a 5 year fixed at 4.69% with low fees, or 5.09% with just a £95 admin fee. Legal fees & valuation are paid for in both.

I'm not recommending them specifically, read Martin's guide to remortgaging and use the moneynet or moneysupermarket calculators to possibly find even better deals.

I'm no expert but unless I'm missing something - whilst it's better than your current deal - NR are taking the p*ss, good style!! :mad:
I say that because for giving you £55 [net] they will have tied you to a very low rate in year 1, a moderately good rate in year 2 and then 18 months paying top whack. A far better deal for them, than for you IMHO. :rolleyes:

meanmachine_2

I agree with the others, that's a terrible deal, to be honest.

They're giving you £1000, and then charging you £900!!!! Rip off!

Northern Rock serve a purpose - in that they have lax lending and are appealing to FTBers as a result.

You're with the wrong lender, in my opinion. Switch.