Is this a good deal?

mamamags

Hello,I am new to this forum and I would like a wee bit of advice....

My fixed rate mortgage ends at the end of May and I have had a letter offering me FULL TERM TRACKER at 5.64% variable or 2,3 or 5 year FIXED RATE at 5.79%. NO PRODUCT FEES. In the past I have always taken a fixed rate as I like to know what my outgoings will be each month - actually I think I am answering my own question here because as ive just said I need to know what my outgoings will be!!

Any way, would I be better to stick with a fixed rate? I have no intention of moving house so the full term tracker does seem appealing too. Any advice on how long I should fix for if i go for fixed rate?

Also does anyone know how to work out what my new payments would be, at present I am on 4.59% on loan of £75k over 23 years.

Sorry to ask so many questions but my head is reeling with all of this, I spent most of today on the phone trying to get thru to my bank to ask them but to no avail!! :hello: Thank you.

bigchipper

mamamags wrote: »

Hello,I am new to this forum and I would like a wee bit of advice....

My fixed rate mortgage ends at the end of May and I have had a letter offering me FULL TERM TRACKER at 5.64% variable or 2,3 or 5 year FIXED RATE at 5.79%. NO PRODUCT FEES. In the past I have always taken a fixed rate as I like to know what my outgoings will be each month - actually I think I am answering my own question here because as ive just said I need to know what my outgoings will be!!

Any way, would I be better to stick with a fixed rate? I have no intention of moving house so the full term tracker does seem appealing too. Any advice on how long I should fix for if i go for fixed rate?

Also does anyone know how to work out what my new payments would be, at present I am on 4.59% on loan of £75k over 23 years.

Sorry to ask so many questions but my head is reeling with all of this, I spent most of today on the phone trying to get thru to my bank to ask them but to no avail!! :hello: Thank you.

Im really interested in the response you receive. I take it you are with the Lloyds Tsb/C&G as I have been offered the exact same rates but in my case on £60k with 11 years to go. My last 2 mortgages have been 5 year fixes. Iwas tempted by HSBC match offer but upfront costs are high - £699

beecher

mamamags wrote: »

Also does anyone know how to work out what my new payments would be, at present I am on 4.59% on loan of £75k over 23 years.
.

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

will help you find out

As for fixed rate/lifetime tracker, that's something I also have to make my mind up about. Nearly went for the lifetime tracker a couple of years ago, but then thought I'd rather know for definite what my payments would be, even if that meant I was going to be out of pocket a bit.

mamamags

thanks for reply Biggchipper I am with Lloyds TSB. I am having problems speaking to them as every time I phone all the advisors are busy! Also have just noticed that the letter they sent me which arrived today is dated 11 May 08?! I have almost convinced my self that the fixed rate is the way to go for me. My existing mortgage allows me to overpay by 10% each year so hopefully this one will be the same and I shall start chipping away at the balance.

bigchipper

mamamags wrote: »

thanks for reply Biggchipper I am with Lloyds TSB. I am having problems speaking to them as every time I phone all the advisors are busy! Also have just noticed that the letter they sent me which arrived today is dated 11 May 08?! I have almost convinced my self that the fixed rate is the way to go for me. My existing mortgage allows me to overpay by 10% each year so hopefully this one will be the same and I shall start chipping away at the balance.

Hi Mamamamgs
I also received my letter today....................spooky!:eek:

I prefer the certainty of a fixed deal and am minded to stay with them for the moment and accept this rate. Other cheaper deals will involve a lot of updfront costs. While i usually fix for 5 years but as the 5.79 rate is the same for 2,3,5 years so I am considering fixing for only 2 or 3 so I can review the situation sooner in the hope financial markets have calmed down a bit by then and a better deal is available for my remaining term (unless anybody on here thinks this is the wrong thing to do. All a bit of a gamble though


BC

Gambler

mamamags wrote: »

thanks for reply Biggchipper I am with Lloyds TSB. I am having problems speaking to them as every time I phone all the advisors are busy! Also have just noticed that the letter they sent me which arrived today is dated 11 May 08?! I have almost convinced my self that the fixed rate is the way to go for me. My existing mortgage allows me to overpay by 10% each year so hopefully this one will be the same and I shall start chipping away at the balance.

The rates look very similar to what we were offered to stay with C&G although they wouldn't budge on the £999 fee, may have been tempted otherwise due to the hassle factor.

Have now been offered a 5.29 5 year fix with First Direct.

bigchipper

bump

mamamags

OK have given up trying to phone Lloyds as i have tried 3 times today, each time they were busy and took my number so they could call back, they did call back at the one and only time that I was out today!! So i have made an appointment to see the in house mortgage advisor in my local branch, cant see her til Wed but I will let you know how I get on. Have decided to stay with Lloyds as I dont want to have to go thru financial assessment again, it was a close call the last time as to whether I could afford it or not. BUT i have been managing really well and have not struggled but I know some companies wont take into account my child maintenance etc.
So now i have to decide fixed or variable?! I am toying with variable as it is only for two years so i could switch then if rates not good. Only problem with that that I can see is when/if I have to switch would there be arrangement fees as I need to factor that into the cost of mortgage. Oh choices choices!! I find it all a bit confusing, although i am careful with money I am not well off so variable rate is a gamble. Ok enough, I could ramble for ages about this, just wanted to thank every one for their responses. CHEERS MM :cheesy:

bigchipper

mamamags wrote: »

Have decided to stay with Lloyds as I dont want to have to go thru financial assessment again, it was a close call the last time as to whether I could afford it or not. BUT i have been managing really well and have not struggled but I know some companies wont take into account my child maintenance etc.
So now i have to decide fixed or variable?! I am toying with variable as it is only for two years so i could switch then if rates not good.

Mamamags

Why not fix for two years then you at least get cetainty in the short term and could still take another fix when that runs out

BC

UK007BullDog

I suggest a 3 to 5 year fixed rate. As your mortgage is smallish you might want to look at a slightly higher rate and no fees. Or pay a small fee for a lower rate. Then you have to consider that the new rate will be higher and your outgoings will be higher. maybe if you have spare cash do some overpayments to repay the mortgage early.

I think there will be a lot of pain in the mortgage market for at least 3 years until things have settled down. So a 3 to 5 year fixed will give peace of mind.

waynedance

I have just taken a life tracker base +.30% (5.30%) for the term (18 years), it depends on how much your loan is for and could you afford it if rates went up to say 8 or 10%.

That is the way i looked at it.