Ste RB5138

Have you seen this arrangement fee - Nat West 3% 5 year fixed, £2500

http://www.thisismoney.co.uk/money/m...ito=newsletter

mamoon2

HSBC have got market leading mortgages at the minute, try them.

Check on moneysupermarket for the best deals.

I got fee free 2.99% tracker for life (2.59% + Base)

Dingdongler

Hi Mamoon, I didn't want a tracker and really wanted fixed. My deal is 3.09% fixed for two years and free valuation/free basic legal and £1000 fees.

I don't see many deals that really beat that. The new Nat West 5 year fixed at 2.95% is actually quite tempting despite the huge fees. It would give me great peace of mind to know what my outgoings would be over 5 years.

I also prefer to deal with Nat West even if it costs me a few quid more. The process is hassle free as they have records of all my income, expenses etc etc.

I haven't exchanged yet and so could in theory change over to this 5 year deal with probably just an admin penalty.

john banks

Agree on the appeal of a 5 year fix but it is priced very high for that comfort, 2 year fix isn't worth much in my eyes.

Dingdongler

What do you mean by that John?

Dingdongler

What do you mean by that John?

john banks

It isn't much protection against rate changes because it is such a short period of time. Much like an umbrella that leaks after a few minutes.

njkmrs

He means Interest rates aint goin nowhere in the forseeable future !!!
So why lock in at higher rate.

As I stated on another of my favourite threads about 3 yrs ago.!!

Dingdongler

Yes, I see your point. It was the best product they had at the time.( a few months back) There was no three year product, only a 5 year one that charged over 0.5% extra

njkmrs

Why not go for Variable rate.The state of the economy at the moment means rates may be cut further yet!
Another .25% off the rate is being talked about.

Dingdongler

You are of course right, rates will not rise in the short term. The problem is I still remember my dad stressed out when rates rocketed to 13%, this has sort of scarred me.

Of course there is virtually zero possibility that there will be significant rate rises in the next two years, but you never quite know.

The lowest tracker out there is from HSBC at 2.65% and I'm paying 3.09% fixed. So basically I'm paying an extra 0.5% for the peace of mind.

njkmrs

And if peace of mind is what your after then yes lock in.It just seems like a massive con to me that you have to pay £1000 pounds for only a two /three or even five year deal.Ten years then yes your buying a comfort zone ,but these short deals are over before you know it.