Nationwide or First Driect (5yr fixed)

Cash-Is-King

Hi

My Natwide mortgage is up in a month and a bit. They offered me this:

5 Year Fixed Exclusive Switcher Loyalty Products - 5.83% (No fees or legals)

Or Hold off for the FD 5 year fixed rate offset Mortgage
5.29% for 5 years
(arrangement fee £299 / fixed offset Mortgage booking fee of £299 plus approx £300 legals).

What is the easiest way of me finding what how what that extra 0.54% equates to (£117K mortgage over a 20 year term)?

Should I hold tight for FD?

mrsm

can't help with the figures but do you have an account with FD already?
You now need to be an existing customer for a mortgage

Treadmill

I'd take the offer, a bird in the hand is worth two in the bush.

nathanhill69

Cash-Is-King wrote: »

Hi
...... Or Hold off for the FD 5 year fixed rate offset Mortgage
5.29% for 5 years
(arrangement fee £299 / fixed offset Mortgage booking fee of £299 plus approx £300 legals).

Do First Direct not help towards your legal fees, I just pulled this off the web-site...

"Remortgages in Scotland and Northern Ireland
In addition to the arrangement fee you will need to pay for a valuation for an offset Mortgage. You will also need to cover your own legal costs, including Land Registry and other directly related completion fees. However, first direct will contribute up to £400 towards these costs (we will refund this to you upon receipt of a copy of your solicitor’s invoice following drawdown of your offset Mortgage) and we will pay for any enquiry fees to your previous lender and money transmission fees."

I am just in exactly the same position as you, offered the Nationwide 5.83% no fees mortgage to stay with them but after doing the maths went with the FD 5.29% deal - although I had no legal fees to factor in.

Treadmill

I'd forget about First direct just now as they are not currently lending, the advice i am seeing everywhere is that if you get offered a good deal grab it, you have been offered a good deal with your existing lender so grab it.

hugglette

that is a good deal if you want a 5 year fix

_Andy_

Treadmill wrote: »

I'd forget about First direct just now as they are not currently lending, the advice i am seeing everywhere is that if you get offered a good deal grab it, you have been offered a good deal with your existing lender so grab it.

They are lending but only to existing banking customer.

Treadmill

_Andy_ wrote: »

They are lending but only to existing banking customer.

Fair enough but i'm assuming that the poster is not an existing customer as they mention holding tight.

To be honest if it was me taking into account the fees and hassle I'd be inclined to stay as I was, I make the difference in monthly payments £37 so you are looking at 2-3 years before the lower APR with FD pays for itself.

_Andy_

Yeah it's not a huge saving. I calculate it as roughly £1298 over the 5 years (i.e FD £1298 cheaper taking into account fees)

allan673

it is free legals with first direct, im 100% certain as im re-mortgaging with them, you pay
£299 arrangement fee (can be added to mortgage)
£299 booking fee
£99 valuation

Cash-Is-King

Yep, free legals except in Northern Ireland and Scotland but they give you £400 towards the deal. I am budgeting an extra £300 to cover VAT and abnormalities - I think I paid apprx £600 the last time I remortgaged.

I am not a customer of FD but I did register a couple of weeks ago, and as a result they stated i am on their 'To Do' list, in fact anybody who registered their details on or before 01 April 2008 are on their 'To Do' list (confirmed via telephone today). I received a letter yesterday stating "Subject to your mortgage being agreed we will honour the rates at the time you called us"

So using http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

For a £117,000 mortgage
FD @ 5.29% (it actually is a £117,299 mortgage as you add the arrangement fee) = Monthly payments of £793.04
Total for five years = £47,582.40

NW @ 5.83% = monthly payments of £826.79
Total for five years = £49,607.04

NW-FD = £2025.00. £2025 less approx £600 for set up = £1375 or approx £275 a year.

Next question - could I be bothered Putting up approx £1K cash up front for the expenses (then to be to be reimbursed £400) to save about £33 per month (£16.50 as I split the bill with my girlfriend), fill forms/solicitors etc etc .

FD took on as many mortgages last month as all of last year - surely that itself needs to be thought about? Nationwide are growing steadily which in the current climate means a bit more security I think.

Conclusion - undecided but thanks for the very useful help. Prob stick with Nationwide