Ste RB5138

Hi All,

This is my situation, I bought my first place, a 1 bed roomed flat and had a fixed rate mortgage of 4.39% over 5 years with Britannia in December 2005.
I had letter through the post today offering me the chance to fix it at the same rate for another 5 years.
It also says they will waive the early repayment charges and arrangement fees if I take this offer. If you have a mortgage term of less than 5 years you would have to extend it to take advantage of this offer.

The offer is available till 12th June.

What do you think of this offer?

hodgy0_2

personally I would take it all day

FlightMan

Grab it. IR can only go one way from here.

MattW

yup - Great rate even today, snap their hand off.

fivetide

iTrader: (1)

Why do you need to even ask?

The only question really has to be "where do i sign?"

btw i'm assuming the waived fees are for the new mortgage and not the old one? if you are still with them then i wouldn't expect a charge!

5t.

EddScott

Without question.

That sort of rate on a fresh application would probably come with a good 500 - 1000 arrangement fee.

IR will go up - not the double figures as some say but probably into the high 5s to 6s.

V5RLTD

iTrader: (5)

Bite their arm off!!!!!!!! Im in a similar situation and the best deal i can get is 5.5% with a £500 fee!!

EddScott

Abbey are quite competitive but their administration leaves much to be desired.

Reffro

I hope I get an offer like that......its a no brainer that one, take it.

I'm on a 5yr fixed at 4.69% till May 2011. Just hoping that rates don't bounce back too quickly then.

Ste RB5138

Thanks for the advice people, I will ring them tomorrow and sort it out.

They will waive the arrangement fees, which will start in January 2011 for me.

I thought it was too good to be true when I first read it!

cookstar

iTrader: (6)

As above, bite their hand off.

rossyboy

iTrader: (8)

Thats what I got recently to 2014 and I thought that was good.

I'm very surprised (and jealous) that they are so keen to extend that far at such a low rate.

V5RLTD

iTrader: (5)

Because i only bought my place in november 2007 i have little equity in it since the value has gone down, think its 85% ltv i have. Im on a variable rate at the moment and want to fix it for 5 years before the rates go up again. I know i'll pay over the odds until the rates go up, but it only needs to go up .5% before i will pay more than what i can fix it at now. Hope this makes sense Is anyone in the same boat? What have you done?
I just want it fixed and then i can forget about it!!!!!!

EddScott

Well it will probably take a couple of years to get back into the mid single figures - can't see it shooting up month by month.

If he goes onto the standard rate he may only pay a low % above base (mine is .99 above base for the life of the mortgage). If he stays at 4% the lender is taking a huge chunk of interest - hence why they encourage a remortgage.

If base is .5 and average lending is 5%, the lender is getting 4.5%. If base 5% and your mortgage is 6& the lender is only getting 1%.

David Lock

About 3 years ago I took out a lifetime mortgage at 5.99% fixed. May seem a bit high now but what the hell I know what I am in for and it's never going to kill me.

dl

warrenm2

yep - you'll be laughing in a year to 18months time - go for it

PaulC72

try getting a deal with any sort of fee for that %age in 12 months time.

Take it.

P1Fanatic

Wish they offered me a similar deal. Had to pay £549 to remortgage 3yr fixed with them recently although wasnt complaining as down from 5.94 to 3.99 and they do seem to look after their existing customer base which is a rare quality these days.

Simon

Ste RB5138

Britannia do seem a good company, lets hope they don't change too much once the merger with Co-Op goes through.

mart360

We got a 5.69% fixed for 10 years in 2000

next year we,ll be looking lets hope they offer us a good deal


Mart

chocolate_o_brian

iTrader: (22)

Same here, got 5.75% in March 2005 for 5 years. Gonna have fun next year with my credit rating

To the O.P. that seems a very very good deal in the current climes.

Timwinner

iTrader: (3)

Sounds pretty sweet, Some good products are coming onto the market but they are only on par with that.
I have seen a 4.5% on a 95% loan form Llyods but you have to promise £30k into a Lloyds savings accounts for 3 years.
If your not looking to go anywhere than no reason not to fix your out goings for a few years.

Ste RB5138

Update, over the phone today they also offered me to fix the mortgage at 4.79% for 10 years

They are posting the paperwork for both options today

TopBanana

Why not double figures?

Timwinner

iTrader: (3)

The economy couldnt withstand double figure IR's for the next decade or so. most people are just in too deep.

EddScott

If you think things are bad now, imagine what an interest rate of say 12% would do?

al4x1

Banks aren't stupid they don't give money away so they're offering these rates as they can't see the base rate going silly. The only thing to bear in mind is are you going to move in the next few years and what would the fees be and if its a house with a partner / wife what would the redemption penalties be if you broke up and had to sell. Its not something you imagine happening but some of the redemption fees are getting silly

rossyboy

iTrader: (8)

Yup, 4% of mortgage redemption fee on mine.

I've already told her we're not splitting up for a minimum of 5 years

Ray T

just had a 4.28% for 3 years offer from Nationwide with £299 fee, for the 5 year option thay want 4.98% , all a pain as my 2.28% runs out at the end of the month reverting to base + 2% i.e 2.5% if only rates would stay low!!!