what mortgage

[knat]

Looking at a remortgage with Norwich and Peterborough. They do a 2 yr fixed at 3.69% with no valuation or solicitors fees. Saves us about £130 per month. At the end of the 2 years it goes up to about the same as we are paying now. There are repayment charges within 5 years however. Do u think it's worth going with this and looking at changing never mind repaymetn charges after 2 yrs or not. DH is being ever so practical and saying that u should work out how much u save over the whole 5 years and not just over 2. i feel go for the short term. anyone had any experience of early repaymetn charges. Any genearl advice?

I have had repayment charges TWICE!!! i know 2 years isnt long but i have had to pay more than £2000 when i thought the deal was a good one at the time

If you have a repeayment mortgage,just try and pay a little extra every month,youll get mortgage paid off quicker and save MASSES of interest

what kind of mortgage is it after the 2 yrs fixed is up?
is it then fixed at a higher rate? or does it switch to variable rate?

if you stay with them for the 5 years will you actually end up saving money? can you overpay it?

you need to find out what the repayment charges are... very often lenders offering a good deal (ie the no valuation fees) will recoup that at a later date...

Don't do it. Look for a fixed rate with no overhang. Cheap deals like this are designed to hook you and charge you loads of interest during the remaining 3 years of penalties. Put a call out for Orinoco, she's a mortgage broker i think. hth

Tell me how much you are borrowing and what the purchase price is, and I'll do the comparison over 5 years for you with the best 2yr FR with no tie ins.

hi thanks everyone. Orinoco. We currently owe £108,000 on this house and its value is £160,000. Would be intersted to know with these figures and out of interest if we were to borrow £115,000 instead of £108,000. the mortgage is over 20 years. We would also like free legal fees/valuation as we don't have much spare at the moment to pay for these. Love to know what you can do . Thanks v much.

No don't go for an overhang you could get badly burned.

Portman are doing 4.3 fixed for 2 years no hangover

Sorry, been working!

I've assumed that you've got a repayment mortgage? Just to make it clear, I don't know enough about you to provide you with "advice", this is just a chat between friends!

Over 5 years, the N & P mortgage is approximately £500 cheaper than the Nationwide 2yr FR at 4.44%with free valuation and legals. However, this assumes that neither lender changes their base rate from 6.3% (N & P) or 5.89% (Nationwide) over the next 5 years. Remember that you'd be tied to N & P for three years on their standard variable rate, and a 1% change in interest rates would make £58.50 per month difference on the N & P mortgage.

hth!

Oh, just to clarify, the Portman deal, which although a lower interest rate at 4.39%, has a higher monthly payment figure due to higher fees and the fact that they calculate the interest on an annual basis rather than daily

thanks orinoco - so financially on paper it would seem N & p ok? but i suppose i'm tied tothem for 5 yrs with the chance of base rate increasing whereas Nationwide it's just 2 years? Do u know roughly what a monthly figure would be with nationwide? Thanks - appreciate it's all guideline and a "chat" thanks

Nationwide £108,000 over 20 years £685pm
N & P (same) £640pm rising to £782 at present standard variable rate of 6.3%

and in answer to your previous question, £115,000 over 20 years would be £682 rising to £833 (at present rate) with N & P, Nationwide £730.

hth!

thanks orinoco. Can u just confirm there are no tie in's with the Nationwide? Thanks,i'll then look online and see about that one - sounds like it might be the better deal. Thanks again

Sorry Knat, there's just a two year tie in alongside the fixed rate.

thanks orinoco that's great will look into it.