Good Mortgage?

barney_1972 · 11 February 2007 at 11:39AM

Just been offered a Mortgage (accepted) via broker from Halifax @ 4.99% with an arrangement fee of £1495.00

Fee is a little high however the rate seems good. I've looked at other mortgages with slightly higher rate and slightly lower arrangement fees but when you weigh up the difference, there seems very little. Either you pay a smaller arrangement fee but then a higher monthly payment instead.

The broker does charge a fee (£149) for which i get someone who will chase up everybody involved in completing the sale, saving me from making lots of phone calls.

Any advice on this or maybe better deals would be greatly welcome.

Amitoocautious · 11 February 2007 at 12:52PM

Well i am guessing this is the 2 year fixed rte that i have seen! I think if you factor in the massive arrangement fee you will see you are actually paying well over the rate of 4.99% and then after 2 years you could be in line for a massive fee again. Personally I would say its not that good a deal at all, have a look at moneysupermarket as you would be better of with a higher interest rate but lower fee IMO

Rick62 · 11 February 2007 at 7:53PM

If your mortgage is of any size then this could be the best 2 year Fixed rate in the market. I am just arranging this very deal for a client, it all depends on the size of your mortgage.

a £149 fee is very reasonable, some broker are fees free, but your brokers fee is very modest and just make sure he does the work for you! He will also get aboutt 0.3% from the lender.

SteveCat · 11 February 2007 at 8:20PM

Amitoocautious wrote:

Well i am guessing this is the 2 year fixed rte that i have seen! I think if you factor in the massive arrangement fee you will see you are actually paying well over the rate of 4.99% and then after 2 years you could be in line for a massive fee again. Personally I would say its not that good a deal at all, have a look at moneysupermarket as you would be better of with a higher interest rate but lower fee IMO

I'm with you on this, it seems awful considering I have recently took a fixed rate at 4.74 for 2 years with a £499 AF. It seems a complete rip-off to me paying a fee that size. My advice: Shop around a bit more as i'm sure you can get better than that.

barney_1972 · 11 February 2007 at 8:27PM

Total mortgage amount is £82k (+AF £1495) = £83,495.00

SteveCat - how recently did you get your deal?

meanmachine_2 · 11 February 2007 at 8:49PM

No, not worth it for a loan of that size.

I think a loan has to be over 150K for these percentage fee based mortgages to become reasonable value.

It's a massive price for an average rate.

If I was buying now I'd take a variable and hope IRs start falling in the second year of any term.

That's just what I would do - you have to weigh up your own circumstances.

SteveCat · 11 February 2007 at 8:52PM

barney_1972 wrote:

Total mortgage amount is £82k (+AF £1495) = £83,495.00

SteveCat - how recently did you get your deal?

Last month Barney, it was with the Abbey and a Self Cert also. 70% LTV Apparently it was an exclusive.

Rick62 · 12 February 2007 at 12:33AM

For your size of mortgage this is not the best deal, the fee is equivalent to about 0.9% on the interest rate, making the deal equivalent to 5.9%

Threre will be better deals, for instance Lloyds TSB 3 year fixed, no arrangement fee 5.49%. Your broker is not earning his fee. The mortgage I'm doing on the Halifax deal (for which it is worth paying the fee) is over £300k.

barney_1972 · 12 February 2007 at 1:04AM

Rick62 Thanks for the reply. Looks a good deal.

e-mailed the broker the details - maybe i should ask for some of his commission!

Thanks everyone else too.

Good Mortgage?

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