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Original poster

Current mortgage lender is offering 3.99% for 3 or 5 years (no fees). Would you take it?

35 replies

Tinker · 14/04/2009 13:33

I know it's impossible for anyone to say really and I'm just thinking out loud. Offer has to be accepted by next week. It would already reduce monthly payments by nearly £100 (we fixed at 4.99% 2.5 years ago).

Can anyone TELL me what I should do? I HATE making decisions

OP posts:
ZoeC · 14/04/2009 13:35

Probably I would, I like the security of fixed mortgage payments and that rate is lower than I'm on.

I haven't checked what standard variable rates are around at the moment though so I'm not sure whether variable is better with interest rates so low. Like the no fee bit though for fixed rate.

ZoeC · 14/04/2009 13:36

(disclaimer - that is in no way saying you should do the same btw!)

LuluisgoingtobeanAunty · 14/04/2009 13:36

i would fix for 5, things are going to be uncertain for a good long while yet and interest rates will go up.

BecauseImWorthIt · 14/04/2009 13:37

Yes. It is a very good deal, especially if no fees. Go for the 5 year option, then you will know exactly where you are for 5 years - and that time will go very quickly.

Rates will inevitably go up.

clumsymum · 14/04/2009 13:38

I'd take it, I think, and prob for 5 years. 3.99 with NO FEES sounds pretty good, and I think interest rates will have to start going up in this situation soon.

But I'm not qualified. I fixed ours at 5.8 in May last year, just before they started to slide

eandh · 14/04/2009 13:39

I'd go for the 5 year deal, we fixed our mortgage in 2007 for 5 years (takes us to dd2 being in yr 1 of reception meaning that I could work more hours then if needed) and even though rates are low now we wished we'd gone for the 10 year deal they offered as I think rates will go back up and would have been extra security

eandh · 14/04/2009 13:40

yr 1 of infants

MIAonline · 14/04/2009 13:42

Personally, it sounds like a good deal to me and I would take it for the 5 years. I think over that period you will get maximum benefit out of it. I am not qualified either, but would say having looked at whats around at the moment, it seems like a good deal, especially as there are no fees.

Marthasmama · 14/04/2009 13:43

Sounds like a good deal. Which lender is it?

Original poster
Tinker · 14/04/2009 13:46

Thnaks all, pretty unanimous

There was a 2-year and a 10-year available at 4.something as well. But 3.99 appeals more (obviously)

OP posts:
bellavitalikesthesimnellife · 14/04/2009 13:50

We are in the process of fixing for 2 years at 3.99 with the shabby Abbey.

noddyholder · 14/04/2009 13:53

That is very good i'd grab the 5 yr quick!These low rates can't last.

Original poster
Tinker · 14/04/2009 13:58

There are, obviously, early repayment fees (wondering if it's been assumed by the Yess that there aren't?) but not planning to overpay by more than 499.00 pm anyway if we do overpay.

OP posts:
Sherbert37 · 14/04/2009 14:01

I got a new mortgage recently and didn't even get offered a variable rate. I'm on 3.49% for 2 years but there was a fee (about £750 IIRC). Like the idea of knowing how much I'll be paying.

MIAonline · 14/04/2009 14:04

No, I assumed there would be early repayment fees, If you did want to pay more off each month you could reduce the term of your mortgage and use the £100 saving to pay the extra. You might be surprised how even a £100 can reduce the length of your mortgage term and just how much you save in interest.

MIAonline · 14/04/2009 14:06

Again, just personal opinion in case anyone thinks I am Financial advisor in hiding!

Original poster
Tinker · 14/04/2009 14:07

Mia - I did ask for a quote just reducing the term by a year and that saved £50 from what already paying so may well reduce term by 2 years. One mortgage adviser told us a few years ago to always reduce term by at least a year every time you re-mortgage as not too noticeable but does make a big differnce in interest paid.

OP posts:
MIAonline · 14/04/2009 14:13

Perhaps I should retrain Tinker, though perhaps the current time isn't too good!

We reduced our mortgage term before I had DS and although it's been a struggle at times, I still feel better knowing that we are paying it off as quickly as we can.

trixymalixy · 14/04/2009 14:23

OOh which lender is that from tinker?

I'm possibly looking to fix at the moment as well and that rate looks pretty good to me!

trixymalixy · 14/04/2009 14:23

OOh which lender is that from tinker?

I'm possibly looking to fix at the moment as well and that rate looks pretty good to me!

trixymalixy · 14/04/2009 14:23

OOh which lender is that from tinker?

I'm possibly looking to fix at the moment as well and that rate looks pretty good to me!

trixymalixy · 14/04/2009 14:24

oops, don't know how that happened!!

Original poster
Tinker · 14/04/2009 14:25

It's my current lender and deal is only available to current customers

OP posts:
LeninGrad · 14/04/2009 16:23

This reply has been deleted

Message withdrawn at poster's request.

ScummyMummy · 14/04/2009 16:33

Go for it, girlfriend. Sounds like a rather fine deal.

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