I can't afford fees

magic_genie

I'm looking for a new mortgage as my present product ends at the end of Sept.

I'm interested in paying nothing for it, as I have a Buy to Let that's costing me a bit at the mo.

I have a friend that works at https://www.moneyexpert.com one of the brokers there has dound one for me, it sounds pretty good, just wondered what you marvellous chaps thought. (BTW the chap was very nice and helpful.)

Here it is:

Nationwide, 3 year BOE tracker, present rate - 4.84, (with a floor of 3.09), on a 52k mortgage, this equals a paymet of £11,351 or £313 pcm (23 yr mortgage) over those 3 years, NO fees.

Any thoughts anyone?

Hope to hear from you, kind regards
Alex

martinpike

What's your position on redemption penalties, tie-ins and penalties for early repayment?

magic_genie

Thanks Martin.

I don't intend to repay early. I don't like to be tied, although I realise this product is for 3 years. I'm not sure, actually what the redemption penalty is, but obviously wouldn't like to pay one.

martinpike

I'd use the comparison engine at moneysupermarket or similar and compare it to what you've been offered.

But whatever you do, make sure you're happy with the costs if you need to cancel early.

herbiesjp

Should that be 4.89% tracker? If so not strictly true to say no fees - there are fees, which you can have added onto the loan if you want, but you end up paying interest on them.

Froggitt

Fee free mortgages generally add more onto the mortgage over the tie in period. Why not add the fees to the mortgage instead?

MortgageGenie

Taking into account the £95 arrangement fee on both schemes, Nationwide's 2 year tracker has a slightly more competitive interest over it's initial rate term. It could be be worth considering that one but it depends if you're specifically looking for a 3 year deal?

Difficult to say for sure without knowing full details but your BTL may be a problem if it's not self-funding.