Is it a good mortgage offer?

k80nd

Hi

Have I been offered a good deal?

Mortgage value £168,000 plus £3391.50 fees over 36 years at a 5 years fixed rate of 6.59%. Monthly payments £1033.24.

Any advice much appreciated as unsure if been offered a competitive product.

Thanks

Paparika

Try London and County or Charcol (links on main site) - 36 years and over £3k fees sounds excessive!

I was browsing L&C the other day, found a Woolwich mortgage of 0.74% over base fixed for 5 years, no fees

Tiddler_2

It's impossible to say based just on the information given.

It depends on the value of your house and whether its a remortgage/purchase.

Sounds like a deal for a 90 - 95% deal with HLC to me.

May also depend on your circumstances, salaries/ages etc etc

Ian_Griffiths_Halifax

Paparika wrote: »

Try London and County or Charcol (links on main site) - 36 years and over £3k fees sounds excessive!

I was browsing L&C the other day, found a Woolwich mortgage of 0.74% over base fixed for 5 years, no fees

Impossible. Either it's 0.74% above Base for 5 Years, which is a variable mortgage, or it's Fixed at a rate of 5.74% for 5 Years.

k80nd

Remortage, house value £180k and L&C could not offer us anything so going through Halifax.

Tiddler_2

I would look at trying to keep your remortgage amount to 90% whereever possible as it would offer much better rates (5.89% with Halifax with same £999 fee, but cheaper options elsewhere) plus to borrow the extra £4000 they are charging you a £2300 HLC approx.

With the savings in rate & fee it may be better value to put the £4000 (if absolutely needed) on a personal loan on credit card. Would worth checking the figures. If you feel that it would cost too much each month then you don't have many options, as most companies restrict remortgages to 90% LTV.

I honestly think it would be a cheaper short term and long term option!!

Just to illustrate the point.

£168k+ fees mortgage at 6.59% =£1033 over 36 years

£164K + fees mortgage at 5.39% (HSBC) = £866 over 36 years
£4k unsec loan at 13.9% (Halifax) = £94 over 5 years.

So saves you £73 per month (plus £2300 HLC) and in 5 years you have paid off the unsec loan.

sarkin

6.59% looks high to me who is the lender

k80nd

Thank you all for your guidance.

I have decided to not give up hope in trying to find a better product.

Dick_here

Ian_Griffiths_Halifax wrote: »

Impossible. Either it's 0.74% above Base for 5 Years, which is a variable mortgage, or it's Fixed at a rate of 5.74% for 5 Years.

I for one assume they meant it's fixed at .74% over base rate for 5 years...