Best current mortgage deals?

[Brighton till i die]

Right my current mortgage is well out of date.

Paying over 5.5% currently :faint:

My mortgage advisor has come up with a couple of new deals and just wondered what people think. My early repayment fee is £3,500.

Best tracker deal offered with NO fees is 1.98%, 2 yr deal, or 2.89% fixed for 2 years again with £700 fees.

Is the base rate likely to shoot up after the election?

any advice greatly appriciated!

Muchos!

 

[beorhthelm]

presumably you tack on the early repayment fee to the new mortgage, otherwise it makes no sence what so ever to pay that much to "save" a couple of %. bare in mind your advisor will be getting paid to fix you up on a new mortgage. i'd like to know where either of those deals are coming from though, they doo look cheap.

as for rates, they wont "shoot" up either way, maybe a couple of 0.25 increases by end of year tops.

 

[Bozza]

NSC calling Gareth, come in Gareth.

 

[Brighton till i die]

presumably you tack on the early repayment fee to the new mortgage, otherwise it makes no sence what so ever to pay that much to "save" a couple of %. bare in mind your advisor will be getting paid to fix you up on a new mortgage. i'd like to know where either of those deals are coming from though, they doo look cheap.

as for rates, they wont "shoot" up either way, maybe a couple of 0.25 increases by end of year tops.

yes the ERC goes onto the mortgage - thats £3500.

BUT saving of up to £341 p/mth therefore over 2 years thats £8184 less ERC = £4600 better off.

just worried as never been on a tracker....

 

[eastlondonseagull]

Right my current mortgage is well out of date.

Paying over 5.5% currently :faint:

Blimey, think yourself lucky! Best fixed deal I can get at the moment, as a first-time buyer with a 10% deposit, is 7%! Best tracker is 4.69% First time buyers are f***ed unless they've got 30% deposit.

 

[Uncle Spielberg]

1.98% tracker rate with no fees or 2.89% fixed for 2 years with a £ 700 fee are both the best. These are most likely direct deals so your broker cannot do it for you but he has served you well in pointing these to you. He could do the work but would not be paid by the lender so unless he is a registered charity he would probably charge you a fee to do so.

 

[islingtonseagull]

If your worried about being on a tracker stick to a fixed. You are paying more, but at least you know how much you can spend on beer each month.

You can get a 2 year fixed for 2.89% but the fees are a % of the loan so can be quite high. Can be added to the loan though.

Or get a nice and long 50 month fixed for 4.49% with £995 fee. Again, can be added to the loan.

Best rates with a 90% deposit are direct with the banks at the mo. Nationwide 5.98% 2 year fixed is what I will get myself and I'm a broker. You have to have your salary paid into a Nationwide account though.

 

[Uncle Spielberg]

Blimey, think yourself lucky! Best fixed deal I can get at the moment, as a first-time buyer with a 10% deposit, is 7%! Best tracker is 4.69% First time buyers are f***ed unless they've got 30% deposit.

The 90% deals are obsene although the tracker at 4.69% represents much ebtter value. Lenders are still basically sticking fingers up at everyone who wants over 75% with disgraceful rates and fees and are all chasing A1 cast iron certainties with at least 25% deposit or equity, or ideally 40%. This is the result of no competition in the mortgage marketplace and the FSA are blocking 30 new lenders coming in. It is being ruled by the high street banks who have created a cartel and monopoly supported by their chums at the FSA and government.

 

[Uncle Spielberg]

If your worried about being on a tracker stick to a fixed. You are paying more, but at least you know how much you can spend on beer each month.

You can get a 2 year fixed for 2.89% but the fees are a % of the loan so can be quite high. Can be added to the loan though.

Or get a nice and long 50 month fixed for 4.49% with £995 fee. Again, can be added to the loan.

Best rates with a 90% deposit are direct with the banks at the mo. Nationwide 5.98% 2 year fixed is what I will get myself and I'm a broker. You have to have your salary paid into a Nationwide account though.

Welcome comrade

 

[Brighton till i die]

1.98% tracker rate with no fees or 2.89% fixed for 2 years with a £ 700 fee are both the best. These are most likely direct deals so your broker cannot do it for you but he has served you well in pointing these to you. He could do the work but would not be paid by the lender so unless he is a registered charity he would probably charge you a fee to do so.

so thats a good deal then?

if i go interest only, can i still pay a bit more each month therefore paying some of my mortgage off? or is it better to go full repayment?

what are the signs of what will happen to the base rate? i dont want to do this tracker at under 2% only to find by Dec its at 4.5% ish!!!

 

[Uncle Spielberg]

I would go for the 2.89% fixed if its a worry as that is a superb rate. Who knows what rates will do but in 2 years could rise 2-3%.

 

[Hatterlovesbrighton]

Do you think things are going to change US? Do you see more risk coming into the market over the next 18 months?

 

[Brighton till i die]

so if your on a tracker and it starts to shoot up, are you screwed and cant get out same as a fixed rate?

will it really go up more than 1.5% over 2 years?

 

[Uncle Spielberg]

Alas no. The main block on this happening is the FSA who want to make it MUCH HARDER to get a mortgage. Self employed people can forget about ever getting a mortgage , moving or re mortgaging under the FSA's new proposals. I truely believe the fsa want a mortgage marketplace of half a dozen high street banks and that is basically what it is now. The lifeblood of the whole property machine and oil was 90% and 95% mortgages which accounted for 80% of transactions pre 2008. Property is moving, albeit it at 50% of historical average figures due to cash buyers as people are buying property rather than investing due to the pathetic interest artes on offer, when interest rates get better for cash buyers this will have a massive adverse effect on the property market imo and without the supply of mortgages and I mean 90% and 95% mortgages at reasonable rates I fear the whole thing will grind to a halt, probably around 2012.

 

[Uncle Spielberg]

so if your on a tracker and it starts to shoot up, are you screwed and cant get out same as a fixed rate?

will it really go up more than 1.5% over 2 years?

the differential is less than 1% though isn't it , its a gamble but if you can fix at under 3% for 2 years either way I would not grumble too much.

 

[Uncle C]

Lenders are still basically sticking fingers up at everyone who wants over 75% with disgraceful rates and fees and are all chasing A1 cast iron certainties with at least 25% deposit or equity, or ideally 40%.

Sorry, but isn't this to be congratulated.

The only place interest rates can go is up, there is a second dip likely in house prices, many in the public sector will soon be without jobs, taxes will rise to repay the national debt, and pay rises in general will be minimal or negative.

Many seem to be wishing for the same market conditions that got us in this mess in the first place.

 

[Uncle Spielberg]

Not at all it means a mortgage is now a luxury for the well off and priviledged. We need a sensible risk based approach to lending and not a totally over the top after the horse has bolted panic scenario from the FSA who are trying now to make lending completely risk free which has and never will work.

 

[Uncle Spielberg]

Sorry, but isn't this to be congratulated.

The only place interest rates can go is up, there is a second dip likely in house prices, many in the public sector will soon be without jobs, taxes will rise to repay the national debt, and pay rises in general will be minimal or negative.

Many seem to be wishing for the same market conditions that got us in this mess in the first place.

This is a myth. The mortgage book in the UK is very healty and past 90%, 95% and even 100% mortgages have a very low default and repo record. The problem came from unregulated 95% self cert mortgages in the USA where anyone who could get a 5% deposit together could get a property and meant cleaners on £ 10k a year if they had an inheritance of £ 50k could get a mortgage of £ 1 000 000 in reality regardless of their ability to actually pay the mortgage in the future, this is a simplification but by and large the lending in the country has always been responsible by and large.

 

[Hatterlovesbrighton]

I suppose my thoughts were that 90/95% mortgages weren't the problem more the offering of big mortgages to people on low salaries.

 

[Uncle Spielberg]

That problem is addressed now anyway. You cannot get a self cert mortgage anymore and lenders are declining 4 in 5 of the 90% mortgage application now anyway. The marketplace has swung far too far the other way now and all logic is gone.