Re-mortgage fixed rates advice

Monney_2

I've just found a fixed rate deal at Nationwide who are offering a fixed rate of 4.89% for ten years.
APR 5.4% variable.

Reservation fee of £389.00
Admin fee of £95.00

Both of which can be added to the mortgage, but have decided this is not a good idea.

Is it a good idea to arrange a fixed mortgage for the next ten years and is this a good deal????

Please help, any advice would be appreciated.

CRUISEMAN

Not the cheapest ten-year fixed. You can get 4.74% from the Yorkshire Building Society.

payless

aside from the potential other rates
( look at differences in fees and flex options - not just rates, as I assume its a remortgage you are considering, YBS also offer a fee assisted rate but its higher , otherwise you pay legal/val fees at 4.74% , so need to number crunch all the options, as will depend on the actual loan size )

If deciding on NW - adding fees , means not having to pay at outset of application , nothing stopping you using the overpay option in month 1 to repay these

Ian_W

Monney wrote: Is it a good idea to arrange a fixed mortgage for the next ten years and is this a good deal????

It is a good deal, apart from the suggestions above check out whether there are better ones on the moneyfacts & moneysupermarket calculator linked to this site. Fees are less important the longer you fix for and the higher your mortgage but you need to consider both the headline rate and fees in your particular case, if you want the best.

Is it a good idea to fix for 10yrs? Come back in 10yrs and everyone will be able to tell you. We've all got 20/20 hindsight, but even the experts disagree on what IR's will do next year, let alone the year after - next 10yrs, total unknown quantity.
Read Martin's article Fixed v Variable. If you want certainty, particularly if you're close to the limit -fix. If you can afford more if interest rates rise and hate losing out if they fall - variable.
My personal opinion is it probably is a good time to fix as we're only a tad above the lowest rates for a generation. My 20yrs+ experience of mortgage ownership is that 5-8% is more the norm rather than where we are now. However, as they as "past performance is not a guide ..." and all that, however, as we're at such low historical levels I would be very surprised if at some time in the next 10yrs they didn't rise significantly for a sustained period.
There again, I've always found life is full of surprises.

mercman_3

would these rates be good for the following;

85% LTV
£170k?

Cheers

Pete

flossypothecary

I am just about to remortage and have gone to Britannia Building Society.

They have offered me a 5 year fixed rate of 4.74% with no conveyencing fees.
They do charge £349.00 in admin fees and this can be added to your mortgage if you like.

The mortgage is portable, so if you move you can take it with you and after 5 years you can change to another deal.

Also if you take out their mortgage payment protection you get the first 6 months free.

I shopped around and found this the best deal

MortgageGenie

flossypothecary wrote:

I am just about to remortage and have gone to Britannia Building Society.

They have offered me a 5 year fixed rate of 4.74% with no conveyencing fees.
They do charge £349.00 in admin fees and this can be added to your mortgage if you like.

The mortgage is portable, so if you move you can take it with you and after 5 years you can change to another deal.

Also if you take out their mortgage payment protection you get the first 6 months free.

I shopped around and found this the best deal

Did you consider skipton's 5 year deal with free valuation & free std legals?

flossypothecary

Yes i enquired at the Skipton and they were not offering free legal fees or valuation and there was a £549 administration fee.

Also their rate was 4.95% as opposed to Britannia's 4.84% and free legal fees and valuation.

meanmachine_2

If you can possibly fix for 25 years - and many lenders will offer this - I'd go for it, as IanW says, despite the recent nudges up, IRs are still historically very low.

I can tell you with a degree of certainty that they're unlikely to go back down to 3.5% - that was a one off brought about by the US slashing their rates to just 1%. It also coincided with the UK thinking about going into the euro.

Neither of those things are now the case.

So, over a 20 year period, do I think rates will rise above 4.75%? I would say definitely. But for how long and how often? Who knows.

MortgageGenie

flossypothecary wrote:

Yes i enquired at the Skipton and they were not offering free legal fees or valuation and there was a £549 administration fee.

Also their rate was 4.95% as opposed to Britannia's 4.84% and free legal fees and valuation.

It's quite a bit lower now:

for remortgages it's 4.59% fixed until 31/10/2005 (ARP 5.60%), comes with free std legals (up to £500k mortgage) and free val (up to £500K mkt value). Booking fee £100, arrangement fee £349. Mortgage discharge fee £175.

flossypothecary

Do you know when this changed - as it was only last week when i enquired!!