Mortgage advise

[TonyN]

OK guys, just scoping out some opinions here, We bought our house ten years ago on January, with a 10 year fixed rate mortgage.

Which was cool, has worked out a little dearer in the long run, but at least we knew exactly what to pay, without worrying about it every month.

Our 10 years is up now, and we've got some new deals offered,

1/ fixed to 2006 @5.06%
2/ fixed to 2009 @5.69%
3/ variable @4.84%, 1% discount till 2006
4/ variable @4.84%, 1% discount till 2009, but early repayment charges.

Option 1 saves us £44 a month over what we were paying, 2 saves us £34, 3 and 4 saves £52 (sweet!!)

Sensibly thinking, the fixed rate is safer, but over the last ten years, the rate has never reached the fixed rate, so I'm tempted to go with either of the variable ones, and have more cash to put towards my new Toy.

Anyone with a better fiscal brain got any opinions/advice I need to know? fire away.............

(Its a 25 year NatWest morgage)

Cheers

[Healewis]

I'd take those options to another lender and see what they can offer you. Chances are, they would want your business thus you get a better rate.....

[jotto]

I would try and get a quote for a capped rate. Did you try a broker or just nat west?

[pops]

OK guys, just scoping out some opinions here, We bought our house ten years ago on January, with a 10 year fixed rate mortgage.

Which was cool, has worked out a little dearer in the long run, but at least we knew exactly what to pay, without worrying about it every month.

Our 10 years is up now, and we've got some new deals offered,

1/ fixed to 2006 @5.06%
2/ fixed to 2009 @5.69%
3/ variable @4.84%, 1% discount till 2006
4/ variable @4.84%, 1% discount till 2009, but early repayment charges.

Option 1 saves us £44 a month over what we were paying, 2 saves us £34, 3 and 4 saves £52 (sweet!!)

Sensibly thinking, the fixed rate is safer, but over the last ten years, the rate has never reached the fixed rate, so I'm tempted to go with either of the variable ones, and have more cash to put towards my new Toy.

Anyone with a better fiscal brain got any opinions/advice I need to know? fire away.............

(Its a 25 year NatWest morgage)

Cheers

FIXED RATE M8 u said it KNOW WERE U ARE

[Ditch]

We remortgaged with the Chelsea from Nat West to get our Surfs, we got a fixed rate in August of 3.48% fixed for 2 years with no redemption fee, it was the best deal we could find at the time Things went sweet so we will probably do it again when the fixed period ends.... and again.... and again.
We were very close to the limit on borrowing but our mortgage guy told the Chelsea, stump up the full amount or we will find someone who willl, needless to say, at the end of the day they all want your buisiness, even Nat West came up with a better deal after they thought we were off somewhere else but it still didn't match the Chelsea.

[TAZMAN]

We remortgaged with the Chelsea from Nat West to get our Surfs, we got a fixed rate in August of 3.48% fixed for 2 years with no redemption fee, it was the best deal we could find at the time Things went sweet so we will probably do it again when the fixed period ends.... and again.... and again.
We were very close to the limit on borrowing but our mortgage guy told the Chelsea, stump up the full amount or we will find someone who willl, needless to say, at the end of the day they all want your buisiness, even Nat West came up with a better deal after they thought we were off somewhere else but it still didn't match the Chelsea.

And here's the latest score.......Chelsea 1 v NatWest 0

[TonyN]

I would try and get a quote for a capped rate. Did you try a broker or just nat west?

Not been anywere yet, this was just the renewal form NatWest. Me being a lazy bastid would propebly just ring them and say yeah, go ahead.

But I think I'll make the effort this time and shop around.

How does one get 'a mortgage guy'? do they cost?

Cheers guys

[Phil H]

Not been anywere yet, this was just the renewal form NatWest. Me being a lazy bastid would propebly just ring them and say yeah, go ahead.

But I think I'll make the effort this time and shop around.

How does one get 'a mortgage guy'? do they cost?

Cheers guys

Tony,

Look in the book for independant financial advisors. What happened with mine was he gets paid from the lender and I think it is a fixed rate for all lenders of £100. That means they are not swayed by commission and will then give the best advice.

Phil.

[Scubasurf]

there loads of offers out there for variable rate which will always be cheaper than fixed. No one can second guess what rates are going to do except when rate are low, their likely to go up and vis versa.

I would suggest that you take a low variable rate without penalties and keep an eye on rates. if you see a trend develop, i.e. 3 base rates increase in a sessions, then switch to a fixed rate to ride out the peaks rates.

I would suggest you do an internet search using marketplace at Yahoo.co.uk.

and if your remorgageing, you can always take some equity out of your house and get a couple of new surfs and a new workshop.

Best of luck and Happy Christmas

[rich]

Check out http://www.moneyextra.co.uk

This site will give you an uptodate comparison on all of the available deals.

My IFA always tells me to go to my current lender and ask them what Customer Service deals they are doing. When you change your mortgage to a new lender there is always a charge (Unless you get a blinding deal!) and your current lender will charge you an administration charge upto approx £150 (In my experience) with a competitive deal. Make sure you find out the complete costs not just the mortgage payments as the costs can outway the discounts!

Whether to go fixed or discounted depends on your attitude to risk. If your money is tight and you need to know exactly how much you are paying every month then a fixed may be better for you. The rates tend to not be as good as the lenders don't like taking the risks!

The discounts on the base rate (variable) will be better and if you go for one without penalties you can always change it if the trend is going towards higher rates. Incidently the rates are likely to go up but with the economy being what it is if you go for a two year discount then your are likely to be on a winner. The Bank of England are unlikely to change the base rate too much as it will kill the economy which in the present climate they aren't likely to do.

Hope this helps

Rich.

[Bryan]

go to www.teletext.co.uk and look in their mortgage section. You tell them how much you want to boroww etc, they then do a search on the best offers.

Otherwise, go into any estate agent and ask for their mortgage broker, he'll be pleased to help.


Regards

Bryan

[Guest]

Tony.

Personally I'd go for a 5 year fixed rate at the moment as I think the rate will only start to go up - it's at historically low rates and I am not sure it will stay there for the next 5 years.

One thing though. Look at the small print, if you go for a fixed or capped rate make sure there is no or minimal penalty just in case you want to change later or pay back early. HSBC do such a scheme as do Abbey and Halifax I think.

Cheers