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    • neas
    • By neas 8th Feb 13, 9:13 PM
    • 3,673 Posts
    • 9,814 Thanks
    neas
    • #2
    • 8th Feb 13, 9:13 PM
    • #2
    • 8th Feb 13, 9:13 PM
    Does anyone know if first direct let you add 2k onto mortgage as it effectively means you need a further 2k to pay upfront otherwise.
    • Thrugelmir
    • By Thrugelmir 8th Feb 13, 9:54 PM
    • 63,181 Posts
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    Thrugelmir
    • #3
    • 8th Feb 13, 9:54 PM
    • #3
    • 8th Feb 13, 9:54 PM
    Providing you are still borrowing within the criteria for the product. Then yes.

    Adding the fees to the mortgage advance changes the dynamics of any cost saving in the longer term.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • neas
    • By neas 8th Feb 13, 11:04 PM
    • 3,673 Posts
    • 9,814 Thanks
    neas
    • #4
    • 8th Feb 13, 11:04 PM
    • #4
    • 8th Feb 13, 11:04 PM
    Comparison is add extra 1k to mortgage when comparing

    2.69% first direct 2k fee

    Vs

    2.99% post office 1k fee

    I have 35% equity

    Across 5 years on a 150k mortgage I'd cost me 2k more in interest but upfront cost is only 1k. I see what you saying about adding to mortgage as its effectively last bit you repay.
    • Thrugelmir
    • By Thrugelmir 8th Feb 13, 11:14 PM
    • 63,181 Posts
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    Thrugelmir
    • #5
    • 8th Feb 13, 11:14 PM
    • #5
    • 8th Feb 13, 11:14 PM
    After 5 years the difference between the amount you'd still owe is£89.

    So very little in it.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • neas
    • By neas 9th Feb 13, 6:26 AM
    • 3,673 Posts
    • 9,814 Thanks
    neas
    • #6
    • 9th Feb 13, 6:26 AM
    • #6
    • 9th Feb 13, 6:26 AM
    how'd you work the figures out?

    I did a quick 'fag' packet calc which admittingly doesn't take into account compound interest.

    So 0.3% extra interest per year works out at £450 extra per year (or £37.50 a month).

    If I paid £37.50 a month extra with the first direct mortgage meaning i paid same mortgage value i'd be chipping away at the £1k extra fees.

    Over 5 years I'd pay an extra £2,250 off the first direct (removing the 1k fee and paying about £1,100 extra off the mortgage).

    Have i miscalculated?
    • marathonic
    • By marathonic 9th Feb 13, 7:00 AM
    • 1,764 Posts
    • 1,318 Thanks
    marathonic
    • #7
    • 9th Feb 13, 7:00 AM
    • #7
    • 9th Feb 13, 7:00 AM
    Current 5-Year Fixes

    The cheapest Post Office rate is 2.74% whilst First Directs is 2.69%. There's only a 0.05% savings, not 0.3%.

    However, the First Direct product is available up to 65% LTV.

    If your LTV is less than 60%, you're more than likely better with the Post Office due to the lower fee. If it's a remortgage, your more than likely better off with the Co-Op as their deal includes legal fees and a valuation and is only 0.05% more expensive.

    If you are on an LTV of 60-65%, then you are comparing the Post Office 2.98% deal to the new First Direct 2.69% deal with £1,000 extra fees. If your loan is above £70,000 here, the First Direct product is worth a further look. Otherwise, stick with the Post Office.

    If you are on an LTV of 65% - 70%, Tesco Bank have a 2.89% offer - 0.09% cheaper than the Post Office product. However, the Post Office product has lower fees. Here, you're more than likely better with the Post Office unless you are remortgaging as the Tesco product includes legal fees and a valuation.

    Then, for 70-75%, it's a straight cut choice of the Post Office.
    • Thrugelmir
    • By Thrugelmir 9th Feb 13, 10:45 AM
    • 63,181 Posts
    • 56,059 Thanks
    Thrugelmir
    • #8
    • 9th Feb 13, 10:45 AM
    • #8
    • 9th Feb 13, 10:45 AM
    how'd you work the figures out?
    Originally posted by neas
    A link for you. Ignore the $ signs. Numbers are numbers.

    http://www.calculator.net/mortgage-amortization-calculator.html
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
  • toptipper-tal
    • #9
    • 9th Feb 13, 1:45 PM
    Beware the fees
    • #9
    • 9th Feb 13, 1:45 PM
    Just gone for a 5 year fix with Britannia. (£60,000 remortgage @ 2.79.) as opposed to the 2.74% Post office deal. Both charge £995-£999 fee however free valuation and no legal fees with Britannia.

    At 2.79% it works out costing £150 more in interest than the 2.74% Post Office 5 year fix......however.....the extras charged by Post Office add £750 to the cost including a further £240 valuation fee, £195 lending fee, a £258 legal fee and a £60 Land Registry fee.

    Therefore despite the slightly higher rate, this deal with the Britannia is saving me £600 over 5 years. And I can over pay up to 10% of outstanding amount each year without penalty.
    Top Deal!!!!!!!!
    • kingstreet
    • By kingstreet 9th Feb 13, 3:35 PM
    • 35,054 Posts
    • 19,084 Thanks
    kingstreet
    For smaller mortgage amounts, it's vital to ensure that fees and cashbacks don't skew the potential savings of a very good rate.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • michaels
    • By michaels 9th Feb 13, 5:03 PM
    • 22,415 Posts
    • 103,197 Thanks
    michaels
    Just gone for a 5 year fix with Britannia. (£60,000 remortgage @ 2.79.) as opposed to the 2.74% Post office deal. Both charge £995-£999 fee however free valuation and no legal fees with Britannia.

    At 2.79% it works out costing £150 more in interest than the 2.74% Post Office 5 year fix......however.....the extras charged by Post Office add £750 to the cost including a further £240 valuation fee, £195 lending fee, a £258 legal fee and a £60 Land Registry fee.

    Therefore despite the slightly higher rate, this deal with the Britannia is saving me £600 over 5 years. And I can over pay up to 10% of outstanding amount each year without penalty.
    Top Deal!!!!!!!!
    Originally posted by toptipper-tal
    Interesting I thought only the coop branded deal had the flexible overpayment facility. I went for the coop deal rather than the Britannia (for which a broker commission rebate might have been available) on that basis.

    With coop I will also get about £60 divi payments each year

    Edit - I am hedging my bets though, I have requested the latest possible remortgage completion date so if a better deal comes along in the next 3 months I can 'switch' and only lose the £150 booking fee
    Cool heads and compromise
  • toptipper-tal
    Use time to reconsider new deals
    [QUOTE=michaels;59247541 I am hedging my bets though, I have requested the latest possible remortgage completion date so if a better deal comes along in the next 3 months I can 'switch' and only lose the £150 booking fee [/QUOTE]

    Good Advice from Michaels....most deals will allow you to hold on to offer for months (I am not switching for 4 months). So if a better deal pops up, all that is lost is the booking fee.

    Better in your pocket than theirs
  • GregDixon
    As a Post Office employee they're offering us £200 off the arrangement fee's, so the 5 year fix is looking even more attractive.
  • Bedfoj
    Fee free Yorkshire Bank / Clydesdale Bank
    Yorkshire Bank / Clydesdale Bank have just launched fee free mortgages with rates of 2.59% and 2.99% so no fees to ay for new customers .
    • Thrugelmir
    • By Thrugelmir 13th Feb 13, 10:16 PM
    • 63,181 Posts
    • 56,059 Thanks
    Thrugelmir
    Yorkshire Bank / Clydesdale Bank have just launched fee free mortgages with rates of 2.59% and 2.99% so no fees to ay for new customers .
    Originally posted by Bedfoj
    Deposit requirements?
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • Yorkie1
    • By Yorkie1 14th Feb 13, 9:50 PM
    • 11,055 Posts
    • 20,844 Thanks
    Yorkie1
    Yorkshire Bank / Clydesdale Bank have just launched fee free mortgages with rates of 2.59% and 2.99% so no fees to ay for new customers .
    Originally posted by Bedfoj
    2 year 60% LTV, 3 year 65% LTV respectively. There are other rates available too, but the cheapest 5 year rate is 3.19% at 60% LTV.
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